Barbara Curson
3 minute read
18 Mar 2021
8:42 am

Cryptocurrencies won’t escape taxation from Sars

Barbara Curson

The taxability of the proceeds on the sale of cryptocurrency depends on the facts, and each matter will be decided on its own merits.

Gold plated souvenir Bitcoin tokens. Picture: iStock

There has been much hype around the taxation of cryptocurrencies and the need for the South African Revenue Service (Sars) to come out with a practice note. The fact that National Treasury and Sars have not come out with any legislation to specifically address cryptocurrencies does not mean that any person trading in cryptocurrencies will escape taxation, or the onus of reporting the profit. Normal rules apply A basic doctrine of the Income Tax Act is that the net amount (the taxable income) of the gross income received or accrued (excluding receipts or accruals of a capital nature) by any...