Crypto earnings & Capital Gains Tax

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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From all accounts they are. Also you can't view it in isolation. Customs is completely braindead.
 
If you buy and hold for ober 3 years you can try claim CGT and see how it goes, if you trade and make profit you will need to pay income tax. I also made losses on some tokens so sold for a lost so my realized gain was zero on the trading exchange. Showed this on my calculations and went though with no issues. however when I evetually cash out it will probably be a mixute of CGT and Income Tax so not sure how they will handle it.
 
L-Dog said:
If you buy and hold for ober 3 years you can try claim CGT and see how it goes, if you trade and make profit you will need to pay income tax. I also made losses on some tokens so sold for a lost so my realized gain was zero on the trading exchange. Showed this on my calculations and went though with no issues. however when I evetually cash out it will probably be a mixute of CGT and Income Tax so not sure how they will handle it.
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Just a note that there is no 3 year "rule". If your portfolio is a mix of long and short holds it can all fall under income tax even if you separate your transactions under different accounts. It boils down to if there is a clear separation of intent like trading currency and holding tokens. Just holding for longer is not an indication of intent.
 
Swa said:
Just a note that there is no 3 year "rule". If your portfolio is a mix of long and short holds it can all fall under income tax even if you separate your transactions under different accounts. It boils down to if there is a clear separation of intent like trading currency and holding tokens. Just holding for longer is not an indication of intent.
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Rule of thum,b is 3 years, I know many people who haave bought stocks nad sold in a year and paid CGT. Think it all relates to "intension" which is difficult to prove or argue. Always assume the worst and hope for the best
 
L-Dog said:
Rule of thum,b is 3 years, I know many people who haave bought stocks nad sold in a year and paid CGT. Think it all relates to "intension" which is difficult to prove or argue. Always assume the worst and hope for the best
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The 3 years is only for stocks and as you say relates to intention so not a rule as such. But if it's for longer than 3 years they usually don't argue even if it looks suspect. We'll see if it works the same for crypto.
 
Has anyone here actually got an opinion from a lax lawyer or tax practiosioner ?
 
Pansyfaust said:
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.
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Ok, so if I :
1) Converted my R20 000 to equivalent in USDT, t
2) Did trades between USDT and BTC.
3) Then converted USDT back to Rand and it is worth R20000 (in other words I broke even after many wins and losses)

I don't have to worry about taxes?
 
techie1998 said:
Ok, so if I :
1) Converted my R20 000 to equivalent in USDT, t
2) Did trades between USDT and BTC.
3) Then converted USDT back to Rand and it is worth R20000 (in other words I broke even after many wins and losses)

I don't have to worry about taxes?
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You declare R20000 sales, R20000 cost of sales. Pay Zero tax risk easier to include on return and call it a day than worry about leaving it off
 
L-Dog said:
Has anyone here actually got an opinion from a lax lawyer or tax practiosioner ?
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Not personally but there's been plenty of opinions from them.
 
Anyone cash out crypto from an internatoinal exchange recently ? Fees lower by withdrawing directly or transfering to a local exchange and then withdrawing from there ?
 
L-Dog said:
Anyone cash out crypto from an internatoinal exchange recently ? Fees lower by withdrawing directly or transfering to a local exchange and then withdrawing from there ?
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cash out to local exchange you always get the 1-2% bump when sending crypto here.
 
Snyper564 said:
cash out to local exchange you always get the 1-2% bump when sending crypto here.
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Only if you sell in Dollar. I noticed on Binance for instance in Rand it's sometimes priced more and sometimes less.
 
Swa said:
Only if you sell in Dollar. I noticed on Binance for instance in Rand it's sometimes priced more and sometimes less.
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this is why arb still exists today - 99.9999% of the time foreign exchanges will be cheaper than SA, therefore send back to SA and cash out. not much on small amounts but def worth it if you sending R250k plus worth. On a side note not sure how you would cash out on a foreign exchange unless you had a foreign bank acc
 
Snyper564 said:
cash out to local exchange you always get the 1-2% bump when sending crypto here.
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Ahh thanks guess it depends on volume and arb but any idea if Sol and XRP is better ? (Can always check just wondering if anyone has done the calculations)
 
L-Dog said:
Ahh thanks guess it depends on volume and arb but any idea if Sol and XRP is better ? (Can always check just wondering if anyone has done the calculations)
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Rather stick to larger volume crypto but for the most part foreign vs local crypto exchange typically have same arb gap no matter what crypto you looking at.
 
L-Dog said:
Ahh thanks guess it depends on volume and arb but any idea if Sol and XRP is better ? (Can always check just wondering if anyone has done the calculations)
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Valr now supports some other networks for USDC and USDT. These are usually pretty stable.
 
Snyper564 said:
yup and follow similar arb gaps - VOL is key for large amounts 250k plus
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Even 250 is quite a lot and you're going to struggle without the price fluctuating a lot or going below market price so you lose any arb. Binance does have cashout to a local account but in reality I'd just forget about skimming any extra profit from such large transactions and go with the easiest route.
 
Didn't want to create a new thread. Risk of putting 10k ZAR in VALR's Lending platform at an APY of 25%?
Seems like free money?

Edit : Asked and answered. Below are the risks :
  • The indefinite lock-up period for lenders - funds could be locked for an undetermined time if no replacement lender is found.
  • The liquidation process, while structured, relies heavily on IOC orders which could lead to significant slippage in low liquidity situations.
  • The broad discretionary powers VALR maintains, including the ability to change collateral weightings and force-close positions without notice.
 
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