Crypto tax crunch in South Africa and ow much percentage to pay?

South Africa is undergoing a significant regulatory shift regarding cryptocurrency to enhance compliance with financial regulations, particularly tax matters.

This ‘crypto compliance crunch’ has been driven by the need for clear guidelines to protect consumers and ensure the required tax is paid.

The Financial Sector Conduct Authority (FSCA) released a study that was conducted to better understand the crypto market in South Africa.

Under this new framework, crypto holders and businesses must report their crypto assets and transactions to SARS.

In the future, crypto exchanges and intermediaries will likely be required to report transaction data directly to tax authorities, making it harder for investors to avoid reporting their crypto income, as tax authorities will have more visibility into their activities.

How much tax do you pay on crypto in South Africa?

The amount of tax you'll pay on crypto in South Africa depends on the specific transaction, the tax that applies, and how much you earn. For crypto profits subject to Capital Gains Tax, individuals pay a maximum effective 18% tax rate, on gains in excess of the R40 000 annual exclusion, depending on their total taxable income. For crypto profits subject to Income Tax, individuals pay between 18% to 45% in tax depending on their total taxable income.

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