SARS’s clampdown forces South Africans to see their side hustles as legitimate businesses with a rightful place in the economy
In recent weeks South African influencers, digital creators and side hustlers have hit the headlines, not for their viral posts or glossy brand deals but for their tax compliance — or lack of it. The South African Revenue Service (Sars) didn’t mince its words when it said free products, paid posts, or sponsored getaways are still income, and must be declared.
It’s an uncomfortable wake-up call for those pocketing up to R5,000 a month for the odd product post, or jetting off on brand deals worth millions, but handled correctly, it could become a defining moment that legitimises and empowers the gig, influencer and side hustle economy.
The truth is that these markets are more than just trendy revenue streams. In South Africa, they are a lifeline for our economy, which remains highly concentrated. The Competition Commission’s 2021 Concentration Report highlighted what most of us already know: a handful of large companies dominate most sectors, contributing the lion’s share of corporate taxes, while small businesses and entrepreneurs compete for scraps of market share.
With limited opportunities in the formal economy, South Africans have turned to new avenues of survival and creativity: driving for e-hailing platforms for example, running online stores, or baking cakes on weekends. The informal economy, already valued at more than R700bn, alongside side hustles and gig work, now supports millions, and the influencer industry is no small player either. Marketing spend on digital influencers in South Africa reached an estimated R500m in 2024, proving this is no longer just a fringe hustle.
Yet, too often, this sector remains invisible in the eyes of the state. Compliance is complicated, rules are poorly explained, and ordinary citizens struggle to understand what’s required of them. Most micro-influencers earn below the tax threshold but are still required to declare income, while some top-tier creators pull in R40m — R60m a year without declaring a cent. This mismatch creates the grey areas where undeclared income flourishes.
Armed with increasingly sophisticated tracking tools, including AI and corporate disclosures, the taxman has officially taken notice of the influencer economy, and will be watching those adverts you thought were just between you and your followers
Against this backdrop, Sars’s decision to tighten oversight should not come as a surprise. From free meals and fashion hauls to all-expenses-paid travel, what may feel like gifts are in fact taxable benefits. Armed with increasingly sophisticated tracking tools, including AI and corporate disclosures, the taxman has officially taken notice of the influencer economy, and will be watching those adverts you thought were just between you and your followers.
The issue, however, isn’t simply compliance. It’s education. Many digital creators are first-generation entrepreneurs. They didn’t study tax law, and some haven’t even finished school let alone gone to university. Instead, they’ve stumbled into a revenue stream while doing something they love, with many starting out creating content from their bedrooms (some still do) or juggling additional gigs alongside nine-to-five jobs.
Expecting them to have the same compliance structures as a listed corporation is unrealistic, yet here lies the opportunity. Compliance doesn’t just safeguard Sars’s revenue, but it can empower creators.
South Africa is in dire need of investment in financial and compliance literacy. Influencers, gig workers and small entrepreneurs need this not only to survive but to thrive. Programmes led by the South African Institute of Chartered Accountants, the Companies & Intellectual Property Commission (CIPC) and Sars itself are doing their bit to demystify the process and make compliance simple, digital, and accessible, but it’s a drop in the ocean.
Registering with Sars, CIPC and labour institutions such as the UIF should not feel like punishment but a chance to have a seat at a bigger table and a slice of a better pie. For those earning above the R95,750 threshold for example, registering as a provisional taxpayer or even as a business unlocks benefits such as expense deductions.
Once you are part of the formal system, you gain credibility with banks, investors and clients. You unlock access to financing, scale opportunities and long-term sustainability. It gives side hustlers a chance to have the same tools as bigger businesses.
We cannot afford to ignore the multibillion-rand side hustle economy, but neither can we let it slip under the tax radar any longer. Sars’s clampdown reminds us that no income exists in a vacuum, and it forces South Africans to see their side hustles as legitimate businesses with a rightful place in the economy.
Corporate giants may still dominate the waters with their fancy yachts, but the side hustle economy is where the fleets are being built. We need to fuel their engines, not sink them in red tape, and it starts with making them part of the economy.
• Mtwentwe AGA (SA) is MD of Vantage Advisory and host of the SAICABIZ Impact Podcast
