SARS to take a tougher stance when assessing crypto trading activities.
The South African Revenue Service (SARS) has taken notice of the surge in South Africans entering the cryptocurrency market sector.
In South Africa, where the revenue service recently clarified that crypto asset profits and gains are liable to the standard rules of income and capital gains taxes, crypto assets have recently been defined as a financial instrument.
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Kaya Biz with Guguletthu Mfuphi spoke to Jashwin Baijoo, the head of crypto asset compliance at Tax Consulting SA about the steps to be taken by the revenue collector.
LISTEN TO THE FULL CONVERSATION HERE:
According to Tax Consulting SA, it is the taxpayer’s responsibility to disclose proceeds from cryptocurrency asset trades because these financial instruments are unreported.
Uncertainty about the financial ramifications of these kinds of transactions is expanding alongside this new wave of investors.
“This distinction is vitally important in determining, and in the instance of taxation, ensuring the correct tax treatment is applied per transaction,” said Baijoo.
Tax Consulting SA also says that the intangible and uncertain nature of crypto-asset transactions, there is some disparity in market best practices, especially when considering the recent classification as a “financial instrument” under South African domestic tax laws.
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