According to Bitcoin.com, South African cryptocurrency traders have begun receiving notices from the South African Revenue Service (SARS) indicating that their tax matters are under review. The tax authority is collecting information from various crypto asset exchanges to assess compliance. Traders who fail to provide the requested information may face criminal charges under the Tax Administration Act. The South African Revenue Service may also investigate historical instances of undeclared ownership of cryptocurrencies. The South African Revenue Service has not yet provided clear guidance on whether cryptocurrency transactions are considered capital gains or income. Therefore, accurately recording gains and losses on local and foreign cryptocurrency exchanges remains challenging.
