A tax event arises when a transaction is carried out. This includes when a crypto asset is sold for money (fiat) or exchanged for another asset (including other cryptocurrencies like stablecoins). Tax must also be taken into account when a crypto asset is rewarded to you. For example, tokens earned from staking. South African taxpayers must consider these events when submitting returns to SARS. 

Yes. Crypto asset profits and gains are taxable in South Africa, even if no fiat withdrawal has occurred. Disposing of crypto or receiving crypto as compensation (such as staking rewards or crypto interest), constitutes a taxable event. These must be declared to SARS during tax filing. 

Crypto profits may be subject to Capital Gains Tax (CGT) or normal income tax, depending on the nature of your transactions. CGT is capped at 18% for individuals, while income tax can be up to 45%. SARS evaluates this on a case-by-case basis. Frequent trades typically indicate a revenue-generating scheme, while long-term holdings may be treated as capital in nature. 

Crypto assets are ring-fenced under the Income Tax Act (58 of 1962). If a taxpayer has experienced crypto losses in 3 out of 5 years (including the current year), those losses can only offset future crypto gains. This applies to South African tax residents across all platforms and activities. 

In South Africa, mining cryptocurrency is generally considered revenue in nature and may be taxed up to 45%. The market value of the crypto earned from mining must be declared as income. Certain operational costs, such as electricity or internet, may be deductible if they were directly incurred in producing income. However, equipment costs may only be offset against future capital gains. 

Once a taxpayer (individual or company) has an unconditional right to the crypto asset, a taxable event arises, even if part of the payment is still held in crypto. The full market value must be declared to SARS, regardless of how it was received or split. 

For South African tax residents, it does not matter whether crypto transactions are routed through foreign or local bank accounts. You are still required to declare all income and capital gains to SARS, regardless of platform or jurisdiction. SARS receives global taxpayer data through agreements with over 80 jurisdictions under the Common Reporting Standard (CRS) and has access to transaction records from many international exchanges. 

Yes. Crypto assets have always been taxable under South African tax law. In April 2018, SARS formally confirmed that standard tax rules apply to crypto. Any prior gains, losses, or asset transfers are subject to review. 

Crypto assets must be valued at market value on the date of the transaction. If no ZAR value is shown, SARS requires use of foreign exchange rules. Investors should include all transactional reports, profit/loss reconciliations, and documentation supporting investment intent and strategy. This information must be submitted to SARS when requested. 

Yes, cross-border transfer of crypto is permitted. However, South African individuals are subject to a Single Discretionary Allowance of up to R1 million per calendar year. If you wish to transfer more than that, you must obtain SARS approval for a Foreign Investment Allowance (FIA) of up to R10 million. These controls apply to crypto as part of South Africa’s exchange control framework.