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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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On this page
  • Trading Income
  • Employment Income
  • Income Tax Transaction Types
  • 2022/23 Income Tax Rates
  • 2023 Tax Year (1st March 2022 - 28th February 2023)
  1. Cryptocurrency tax
  2. Which Types of Taxes Apply?

Income Tax

PreviousWhich Types of Taxes Apply?NextCapital Gains Tax

Last updated 1 year ago

Trading Income

Earning income within the crypto-sphere is a relatively new concept and has become essential for many investors’ strategies. The expansion of Proof-of-Stake as a consensus mechanism, major lending platforms such as Celsius and ample De-Fi yield-farming opportunities, has meant the crypto-sphere is now littered with income-earning opportunities.

Anyone who buys and sells, exchanges, mines or stakes crypto assets, needs to first consider if they are engaged in a trade, involving crypto assets, rather than simply assuming their gains will be treated as capital gains. Profits arising from crypto asset derivatives will generally be treated as trading income.

SARS generally views crypto assets being held as a speculative asset that is subject to income tax treatment. Capital gains tax treatment is only applied in exceptional circumstances.

Employment Income

Income Tax Transaction Types

Although SARS does not provide concrete guidance, here are all the possible transaction types where income tax will be applicable:

2022/23 Income Tax Rates

2023 Tax Year (1st March 2022 - 28th February 2023)

23 February 2022 - See the changes from the previous year:

Taxable Income (R)
Rates of Tax (R)

1 - 226 000

18% of taxable income

226 001 - 353 100

40 680 + 26% of taxable income above 226 000

353 101 - 488 700

73 726 + 31% of taxable income above 353 100

488 701 - 641 400

115 762 + 36% of taxable income above 488 700

641 401 - 817 600

170 734 +39% of taxable income above 641 400

817 601 - 1 731 600

239 452 + 41% of taxable income above 817 600

1 731 601 and above

614 192 + 45% of taxable income above 1 731 600

Remember: As soon as you earn 'income' through your crypto investments, SARS may view you as a , not as an investor. An amount may be considered as β€˜income’ regardless of whether it is in fiat or in crypto.

If paid in crypto assets, the Rand equivalent at the earlier of receipt or accrual (unconditional entitlement) is taxable as β€œother income”, being subject to normal tax, at the effective tax rate of the respective taxpayer. In these cases, the costs a taxpayer can apply to reduce their tax liability are limited. See our detailed guidance on .

See the new 2022/23 Income Tax rates .

trader
🀝Staking
⛏️Mining
🎈Airdrops
πŸ‘›'Employment Income'
🌊Liquidity Pools
πŸ’°DeFi Interest / Rewards
here
employment income