SARS has confirmed that social influencers will now fall under its taxpayer segmentation model, a move that signals a clear intention to tighten oversight of income earned through digital platforms, reports BusinessLIVE.

In a media statement released on Friday, the tax authority said it has ‘noted information circulating in public regarding taxation of social influencers' and sought to clarify its position.

A social influencer is typically someone with a substantial online following who monetises their reach by partnering with brands, creating sponsored content, or promoting products and services.

SARS said these activities constitute work in the same way as freelancing or contract employment.

This activity has become so popular and lucrative some are making serious money and a living out it.

The tax authority’s view is that since influencers are benefiting financially – whether through cash payments, free products, services or travel perks – they should also contribute to the fiscus like other taxpayer.

SARS said influencers will be managed on a case-by-case basis, according to income tax brackets outlined in the Income Tax Act of 1962, and many may fall into the provisional taxpayer category.

‘In terms of the new segments, such as the social influencers’ economy, SARS understands that traditional marketing campaigns are increasingly digitising through smart technologies.’

The Revenue Service made it clear that any form of payment received by influencers is considered taxable.

To ease compliance, SARS has developed outreach tools tailored for this new taxpayer segment.

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