Learn how South African freelancers, influencers, and online businesses can declare their digital income with SARS using eFiling and avoid costly penalties.
âś… Why Filing Digital Income Matters
In South Africa, all income – including digital or online income – is taxable. Whether you're a content creator on TikTok, a freelance graphic designer, or running a dropshipping store, SARS expects you to declare your earnings.
Failing to submit accurate tax returns can lead to:
⚠️ Penalties and interest
đźš« Legal enforcement
🔍 Delays in loan or visa applications
🔍 What Counts as Digital Income?
If you're earning money online, these revenue streams are considered taxable digital income:
TikTok, YouTube, or Instagram monetization
Freelance work (Upwork, Fiverr, local clients)
Affiliate marketing commissions
PayPal payments for services
Earnings from online stores (Shopify, Takealot, etc.)
đź’ˇ Tip: Even if you're paid in USD or through crypto, SARS still requires you to declare it in ZAR equivalent.
🧾 Step-by-Step: How to File Digital Income with SARS
1. Register for a SARS Tax Number
If you don’t already have a personal or business tax number:
Visit sars.gov.za
Use the eBooking system or visit a branch
Provide ID, proof of address, and bank details
2. Create a SARS eFiling Account
Go to efiling.sars.gov.za and register:
Choose “Individual” or “Sole Proprietor”
Link your tax number
Activate via SMS/email OTP
3. Track Your Digital Income Sources
Use a spreadsheet or accounting tool like:
Sage One
Xero
Zoho Books
Or even a simple Excel sheet
🔍 Include client names, platforms, PayPal receipts, currency conversions (USD to ZAR), etc.
4. Submit Your ITR12 Return
Once the filing season opens:
Log into eFiling
Go to “Returns” > “Returns Issued” > “ITR12”
Declare income under “Local Business, Trade and Profession”
Attach supporting documents (invoices, bank statements, etc.)
🛡️ Pro Tips for Staying SARS-Compliant
âś… File annually, even if your earnings are under the threshold
âś… Use the SARS tax calculator to estimate payments
âś… Consider registering as a Provisional Taxpayer if your income fluctuates
âś… Hire a SARS-registered tax practitioner if unsure
âś… File annually, even if your earnings are under the threshold
âś… Use the SARS tax calculator to estimate payments
âś… Consider registering as a Provisional Taxpayer if your income fluctuates
âś… Hire a SARS-registered tax practitioner if unsure