South African Revenue Service Clarifies Taxation Guidelines on Cryptocurrency Sales and Exchanges

Applying Existing Tax Laws to Cryptocurrencies

On June 30, the South African Revenue Service (SARS) released a draft guideline explaining the application of existing tax laws to cryptocurrency transactions. Under the framework of the 1962 Income Tax Act and capital gains tax, the guideline outlines how taxpayers should report their cryptocurrency transactions. SARS emphasized that this document merely organizes how existing tax rules apply to cryptocurrencies, without creating new cryptocurrency taxes.

SARS explained that this document is strictly an organization of how existing tax rules should be applied to cryptocurrencies...