Crypto earnings & Capital Gains Tax

techie1998 said:
If I deposit R100000 in Binance, vonvert it to USDT and trade and at the end of the day I break even and convert it back to Rand and deposit it back to my bank, how do I calculate how much tax I need to pay?
Let's say I traded 20 times. I made R20 000 in trading and lost R20000 in trading.
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Every trade is a PNL that is converted to ZAR. The price of USDT fluctuates in ZAR, so a PNL of one trade might be different in ZAR compared to the next.
 
Swa said:
That is partly the problem perhaps. More people today are exposed to direct trading where with unit trusts there was no working out taxes and you only paid on the profit you made.

But regardless of that crypto has components and ways of transacting that doesn't exist in traditional markets. So new rules are needed to make it workable and one is that you should be able to classify crypto as either an asset or currency. Yeah already got you there, for anybody that says the rules are simple and correct why is it SARS insists on classifying a currency as an asset?

Now the part I take exception to is that I'm giving bad advice. I'm not giving any advice. I'm pointing out where the flaws are and that they will lead to people not complying.
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It’s one thing I hope comes from the local crypto licensing is that the exchanges will be forced to do the tax reporting for you.
 
Harmonic said:
F that. Bend over and take it deeper darling?

F no.
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What do you mean?

I’m referring to them simply doing all the work for you instead of you doing it yourself.

Issuing you with whatever code report before tax season.

There’s no choice in this, if you aren’t doing it already SARS will come for you eventually. I just want to see the exchanges being tasked with doing the work.

Regulation will likely mean back dating as well. Maybe you are lucky and they only look forward.
 
Snotface said:
Is SARS even monitoring this yet?
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dont know about monitoring....but there's been a section for it on that return for a while...just wondering when they will start populating it

exchanges here also have your info so I'm sure there must be some monitoring going on...
 
akescpt said:
dont know about monitoring....but there's been a section for it on that return for a while...just wondering when they will start populating it

exchanges here also have your info so I'm sure there must be some monitoring going on...
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Yep, i just don't want to wake a sleeping bear if i don't have to.
 
Snotface said:
Yep, i just don't want to wake a sleeping bear if i don't have to.
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A friend of mine was earning a living full time off crypto trading since 2019. He has never declared any of his profits and somehow managed to sleep well at night, and never got a call from SARS.

He's recently emigrated, but one day he might have problems trying to come back here for a holiday.

If you withdraw into an SA account it's not worth the risk.
 
Snotface said:
Is SARS even monitoring this yet?
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100% if your amounts are significant do a voluntarily disclosure process or risk 200% penalty.
Simply not worth it.

Also zero excuses. You should be fine going the vdp route remember you only pay tax on profit if
 
imagine trying to tell a SARS braindead that you deposited R50,000 ten years ago in multiple exchanges... and then moved from those exchanges to one (binance as an example) and then you sent R25,000 back from binance as you didn't make any money so gave up...

SARS accountant "yes but you made R25,000" because it came into your account
 
Wrath of Khan said:
imagine trying to tell a SARS braindead that you deposited R50,000 ten years ago in multiple exchanges... and then moved from those exchanges to one (binance as an example) and then you sent R25,000 back from binance as you didn't make any money so gave up...

SARS accountant "yes but you made R25,000" because it came into your account
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You genuinely think they're that stupid?

So they'd screw me over if I deposited R50k in to overseas bank A, moved it to bank B and then withdrew to my local account?
 
Speedster said:
You genuinely think they're that stupid?

So they'd screw me over if I deposited R50k in to overseas bank A, moved it to bank B and then withdrew to my local account?
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yup they are, braindead rats... they owe me money for overseas work and still can't even apply their own "section xyz" they even wrote back after multiple disputes stating how they calculated my tax, stating a completely wrong calculation <-- and do you have any recourse? nope... years and years and years later
 
Wrath of Khan said:
yup they are, braindead rats... they owe me money for overseas work and still can't even apply their own "section xyz" they even wrote back after multiple disputes stating how they calculated my tax, stating a completely wrong calculation <-- and do you have any recourse? nope... years and years and years later
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I have had zero issues with all my crypto tax declarations over the span of almost 7 years - as long as you have everything properly documented etc its fine...
 
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