The South African Revenue Service (SARS) is ramping up its efforts to ensure tax compliance among a burgeoning segment of the economy: social media influencers and gig workers. Recognising the substantial growth of these sectors, SARS has adopted a proactive approach this tax season, centering on education and outreach to equip these individuals with the knowledge they need to fulfil their tax obligations.
This shift comes as traditional marketing budgets increasingly transition from established advertising agencies to online personalities with sizeable followings. With the influencer economy and gig work becoming central to many South African livelihoods, it’s imperative that those in these sectors understand the implications of their newfound revenue streams.
Tax expert Luncedo Mtwentwe, Managing Director of Vantage Advisory, highlights the historical challenges of tax compliance among artists and influencers. “A lack of compliance has been a consistent issue, with many artists owing SARS millions in unpaid taxes,” he explains. Mtwentwe emphasises the importance of financial literacy, advocating for a strong foundational understanding of tax law.
“It is a wake-up call for all taxpayers in South Africa to truly understand the tax law in the nation, or at least the basics,” says Mtwentwe. “You don’t have to become an expert; just grasp what you need to do when you generate income and how to get your house in order. The last thing you want is to see your brand flourish, generating millions of rand, only to find that you lack the necessary tax literacy. Without that understanding, your financial foundation may crumble five years down the line.”