Recently SARS (the South African Revenue Service) announced that it is paying closer attention to the taxation of social influencers — or as we prefer to call them, digital entrepreneurs.
If you’re making money online — whether from TikTok, Instagram, YouTube, or other digital platforms — here’s what you need to know.
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Why It Matters
Unlike a 9-to-5 job, where your employer deducts PAYE and pays it over to SARS, the responsibility falls on you to:
– Register for Income Tax and Provisional Tax.
– Disclose all your income — cash and even “in kind” benefits like free products, flights, luxury items, or sponsored perks.
SARS considers all these taxable income.
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Provisional Tax Basics
Digital entrepreneurs usually qualify as provisional taxpayers. This means:
– 1st payment: Due 31 August (six months into the tax year).
– 2nd payment: Due 28/29 February (end of the tax year).
– Optional 3rd payment: To “top up” and avoid interest.
Penalties to watch out for:
– Late Payment Penalty – 10% of what you owe if you miss the deadline.
– Underestimation Penalty – if your second estimate is too low or not submitted.
And remember: if your turnover exceeds R1 million in 12 months, you must also register for VAT within 21 business days.
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What About Working Overseas?
Many digital entrepreneurs work from different countries, but remember: tax residency rules apply. If you’re a South African tax resident, SARS can tax your worldwide income – even if you earn it overseas. If you become a non-resident, you’re only taxed on South African-sourced income. Determining residency depends on tests like the “ordinary residence” or “physical presence” rules, so it’s important to get professional advice before assuming you’re off the hook.
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SARS Is Watching
SARS is using advanced tech and banking data to track digital entrepreneurs. If you’re not registered and compliant, they’ll likely find out.
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Didn’t Know? There’s Help
If you’ve slipped up, you can use the Voluntary Disclosure Programme (VDP) to come clean. This can reduce penalties and interest, and even protect you from prosecution.
It’s a chance to start fresh before SARS takes tougher action.
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Final Word
Tax compliance isn’t just a legal duty — it’s also peace of mind. If you’re a digital entrepreneur, get professional advice to make sure:
– You’re correctly registered as a provisional taxpayer.
– You’re declaring all taxable income (cash and benefits).
– You’re up to date with SARS obligations.
And if you’ve fallen behind, the VDP may be your best route to catching up.
👉 At Meerkat Accountants, we’re here to guide you through this maze.