SARS is going after even those dealing in cryptocurrency. In early June, SARS asked crypto platforms to provide information on its client bases. SARS commissioner, Edward Kieswetter, explained why the revenue is doing this.
“The reality is that in SA we’ve seen an increase in South Africans buying and trading in cryptocurrency. We’ve seen daily trading rates increasing as well as a number of exchanges in South Africa. We have 12 trading sites.
“We focus on the top one’s exchanges. The publication of tax laws on cryptocurrencies is no different from other assets,” he said. So, if at any point in time you have earned income through trading crypto assets, you should disclose that income as you disclose all your income,” he said.
Kieswetter said you should convert the income from the cryptocurrency value to the rand value for tax filing purposes.
He said there is always a debate whether the activity is a capital gain, income, or revenue, and this is where the rubber hits the road.
“That is where taxpayers may try to mask the true nature of that money – whether it is capital growth, or in fact, income,” he said. Kieswetter urged South Africans who buy or trade cryptocurrencies to follow the route of voluntary compliance through full disclosure of their activities.
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