The South African Revenue Service has announced that social media influencers are now included in its taxpayer segmentation model, emphasising the need for compliance with tax regulations.

The agency clarified that all forms of income, whether received as cash, products, services, or travel perks, must be declared. Influencers are encouraged to report earnings from brand collaborations, sponsored content, and affiliate marketing.

The move is part of a broader effort by Sars to enhance compliance within the gig economy and government sectors.

Commissioner Edward Kieswetter highlighted that Sars aims to assist honest taxpayers in fulfilling their obligations, expressing a commitment to providing clarity and a seamless experience for influencers navigating the tax system.

With over R500 billion in unpaid taxes being targeted, Sars has identified online content creators as key areas where compliance has been lacking. Experts warn that many influencers may not be aware that benefits such as free meals, travel, and products count as taxable income.

The rise of digital marketing has shifted advertising budgets from traditional agencies to individuals with significant social media followings.

In response, Sars is launching educational campaigns, including videos, webinars, and seminars, to help influencers understand their tax responsibilities.

While Sars prioritises voluntary compliance, it has made it clear that penalties will be enforced for concealed income. The agency reiterated that regardless of how social influencers are compensated, all earnings are deemed taxable and must be reported accordingly.