SA's influencers are becoming big business, but many aren't paying the taxman
The South African Revenue Service is increasingly vigilant in monitoring influencer earnings, warns Vantage Advisory's Luncedo Mtwentwe.
Influencers, Pexels/Artem Podrez
Stephen Grootes gets the lowdown on influencers and tax from Luncedo Mtwentwe, MD of Vantage Advisory.
Influencers on social media are making big bucks around the world, including South Africa.
At home, the digital marketing industry is projected to exceed R500 million for 2024 and continue to keep growing into the future.
At the same time, many local influencers don't see themselves as businesses that need to pay a share of income generated to the South African Revenue Service (SARS).
The taxman sees what you are doing on public platforms and is using AI to track you even more efficiently, warns Luncedo Mtwentwe, MD of Vantage Advisory.
"The value that these influencers add to the economy is around R500 million, and we expect that in the next five years they're going to be contributing over R1 billion... and that is why SARS is starting to look at them."
"We deal with people making a career out of this who earn anything from a minimum of R100 000 a year, to over R1 million."
Luncedo Mtwentwe, Managing Director - Vantage Advisory
It’s crucial for content creators to recognise themselves as businesses and ensure full compliance with tax regulations, Mtwentwe says.
SARS monitors influencer earnings, including cash payments AND promotional gifts.
Failure to declare such income can lead to severe penalties, potentially jeopardising both earnings and career, he warns.
Scroll up to listen to Mtwentwe's advice for influencers