Influencers And Tax: Jashwin Baijoo Explains How Content Creators Can Keep SARS Off Their Backs

South African social media influencers and content creators are being urged to take their tax obligations seriously as the South African Revenue Service (SARS) increases its focus on income generated through the digital economy.

Jashwin Baijoo, a tax expert, has highlighted the importance of understanding how earnings from social media platforms, brand partnerships and promotional activities are treated under South African tax legislation.

The growing influencer economy has created new opportunities for individuals to earn money through platforms such as Instagram, TikTok, YouTube and Facebook. However, these opportunities also come with responsibilities that many creators may overlook.

According to SARS, income earned from content creation and influencing is generally regarded as income from a trade or business activity. This means that creators must declare their earnings, regardless of the size of their following.

Cash payments are not the only taxable income.

Influencers who receive free products, services, holidays or other benefits in exchange for promotional content may also have tax obligations.

For example, a creator who receives clothing from a fashion brand in return for advertising the products could be required to declare the value of those benefits. The same principle applies to sponsored trips, accommodation and other arrangements where compensation is provided in exchange for publicity.

SARS has made it clear that the nature of the benefit and the circumstances surrounding the arrangement determine how it should be treated for tax purposes.

Creators operating as sole proprietors generally declare their business income on their individual income tax returns, known as ITR12. Depending on their circumstances, they may also be required to register for provisional tax and submit IRP6 returns.

Provisional tax allows taxpayers with income outside traditional employment to pay their tax liability in advance, reducing the risk of facing a substantial bill when submitting their annual returns.

Influencers must also understand which business expenses may qualify for deductions. Expenses incurred in producing content, operating equipment and running the business could potentially be deductible, provided they meet SARS requirements.

However, personal expenses cannot automatically be claimed simply because they are associated with an influencer’s lifestyle.

Value-added tax (VAT) is another consideration for creators whose businesses expand. SARS requires sole proprietors to register for VAT once their taxable supplies exceed the compulsory registration threshold of R2.3 million within a 12-month period.

The tax authority has also introduced guidance specifically aimed at influencers and digital content creators, outlining their responsibilities within the gig economy.

Baijoo’s discussion comes as the influencer industry continues to grow, attracting individuals who may previously have viewed social media earnings as informal income.

The message is clear: creators should maintain accurate records of payments, gifts, sponsorship agreements and business expenses.

Understanding these obligations, seeking professional tax advice where necessary and submitting accurate returns can help influencers avoid penalties and remain compliant with SARS.

As the digital economy evolves, tax compliance is becoming an essential part of building a sustainable content-creation business.