RATE Group | South African Releases Draft Cryptocurrency Tax Law
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South African Releases Draft Cryptocurrency Tax Law

09 Aug South African Releases Draft Cryptocurrency Tax Law

Posted at 02:34h in Cryptocurrency News by

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The South Africa Revenue Service (SARS) recently released a draft cryptocurrency tax legislation. The draft defines the framework of virtual currency taxation in the country.

Details of the Draft Cryptocurrency Tax Legislation

The draft cryptocurrency tax legislation follows on from the press release issued by SARS in April 2018. At that time, the tax agency categorically laid out plans to tax income earned via virtual currency transactions. As part of the April 2018 press release, SARS said:

In South Africa, the word “currency” is not defined in the Income Tax Act (the Act).  Cryptocurrencies are neither official South African tender nor widely used and accepted in South Africa as a medium of payment or exchange. As such, cryptocurrencies are not regarded by SARS as a currency for income tax purposes or Capital Gains Tax (CGT). Instead, cryptocurrencies are regarded by SARS as assets of an intangible nature.

Under the draft, digital currencies like Bitcoin00 will be…

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