The South African Revenue Service (SARS) has identified social media influencers and digital content creators as a new tax compliance target, with podcasters urging SARS to focus on multi-billion dollar tech giants before turning its attention to its still-developing sector.
What did Parliament say about taxing content creators?
Podcasters were debated at a parliamentary roundtable this week, where proposals to tax content creators and professionalize the industry were raised, MyBroadband reports.
Communications Minister Solly Malatsi acknowledged that South Africa has not yet finalized its approach, citing the need to balance fair taxation with attracting investment from top platforms.
Khusela Diko, chair of the parliamentary communications portfolio committee, said content creators were a thriving business worthy of a modern legislative framework, but broader dialogue was needed before any concrete policy decisions could be made.
What income are podcasters and creators required to declare?
Chartered accountant and tax practitioner Sibongile Khumalo, speaking to SABC News, said SARS is clear: all income must be declared, regardless of its source.
This includes cash payments as well as non-monetary benefits such as gifted products, free services and brand-sponsored travel, all of which are taxable under the current Income Tax Act.
Khumalo said creators should estimate the commercial value of any travel or gifts received in exchange for content and declare that amount as income.
In the eyes of SARS, a gift is payment for a service rendered.
What if the manufacturer can't prove his expenses?
Poor record-keeping is the most common and costly mistake creators make.
If SARS investigates and a manufacturer cannot verify their business expenses, they face tax liability on the full market value of all non-monetary benefits received.
What should tax policy be like for different types of creators?
Jonathan Warnke, managing director of the South African Podcasters Guild, argued that any new tax structure should differentiate between full-time commercial creators, hobbyists and those in the early stages of building their platforms.
He said only a small percentage of manufacturers earn significant commercial income, while the majority generate minimal revenue.