The South African Revenue Service (SARS) has warned taxpayers that they could be penalised if they do not declare cryptocurrency gains and losses. The revenue service said it deemed cryptocurrencies – such as bitcoin and ethereum – as intangible assets, rather than “a currency for income tax purposes or capital gains tax”. The onus was on taxpayers to declare all cryptocurrency-related taxable income in the tax year in which it is received or accrued, SARS said in a statement. Failure to do so could result in interest and penalties, it said. SARS spokesman Sandile Memela said in 2017 that the revenue service was in discussions with global peers and at the time was exploring options. Regulators in most countries around the world have been grappling with how to tax and manage the cryptocurrency market, which has pulled back in recent months following a spectacular rise in value in 2017. For example, Chinese authorities have sought to clamp down on cryptocurrency through strict regulat...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.