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South African Tax Guide
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  • Cryptocurrency Tax Guide for South African Individuals
    • Recap
    • Tax Consulting South Africa
  • Cryptocurrency tax
    • Is Cryptocurrency Taxed in South Africa?
      • Tax Deadlines
    • Which Types of Taxes Apply?
      • Income Tax
      • Capital Gains Tax
    • Investor or Trader?
      • How to Know The Difference
    • Valuation of Crypto Assets
  • How To File Your Return
    • Record Keeping
    • Filing Your Tax Return
  • Transaction Types
    • πŸ’΅Selling Crypto for Fiat
    • πŸ“ˆTrading Crypto for Crypto
    • πŸ—³οΈHolding Crypto
    • πŸ”„Swapping Crypto
    • πŸ›οΈPurchases Using Crypto
    • 🎁Gifts to Other Persons
    • 🎈Airdrops
    • πŸ’ΈTransfers Between Wallets
    • 🀝Staking
    • ⛏️Mining
    • πŸ‘›'Employment Income'
    • 😰Lost / Stolen Crypto
    • 🌊Liquidity Pools
    • πŸ–ΌοΈNFTs
    • πŸ’°DeFi Interest / Rewards
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  1. Cryptocurrency tax

Which Types of Taxes Apply?

PreviousTax DeadlinesNextIncome Tax

Last updated 1 year ago

Any person who makes a transaction (buy, sell or swap) in crypto assets, mines or stakes crypto assets, or otherwise participates in decentralised finance, must declare their activities to SARS in their returns.

Either income tax or capital gains tax will apply to crypto asset activities, depending on the type of gains and the activity undertaken to generate them. Any gains from short-term and active transactions are generally subject to income tax, whereas long-term and passive gains (i.e., investment returns) are generally treated as capital gains.

There is no single factor that distinguishes between when gains and losses should be subject to the income tax or capital gains tax rules, with SARS taking a very much case-by-case approach. This is a complex area, and we recommend that you consult with a professional advisor who is familiar with crypto assets to consider your particular circumstances.