Crypto earnings & Capital Gains Tax

Sly21C

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Feb 14, 2008
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#41
So we're in agreement (pending verified statements from SARS) that crypto to crypto trade profits are not taxed at this point? i.e. BTC to ETH trades, etc, are not taxed. It's only when you cash out to ZAR that you are liable for tax (which is fair)?
 

Damac10

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Jun 22, 2014
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#43
So we're in agreement (pending verified statements from SARS) that crypto to crypto trade profits are not taxed at this point? i.e. BTC to ETH trades, etc, are not taxed. It's only when you cash out to ZAR that you are liable for tax (which is fair)?
Why is it fair? Why should they get a cut? Winminer pays out in amazon vouchers and in dollars to PayPal..I dont feed pigs
 

Sly21C

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#44
Why is it fair? Why should they get a cut? Winminer pays out in amazon vouchers and in dollars to PayPal..I dont feed pigs
I think taxation is legalized theft, but unfortunately we're at the mercy of "criminals" so there's little we can do. If you can avoid not to feed the pigs, then more power to you.
 

rza

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Aug 19, 2008
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#45
Yes, income. You could offset the cost of electricity though. And maybe depreciation on the mining kit.
And definitely the hours you spent running the mining operation. This is something that people always forget. When you trade/mine, the time you spent is tax deductible and you must be able to substantiate it. Monitoring the exchange is a cost to the income/capital gain.
 

IT_Steven

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May 4, 2009
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#46
So we're in agreement (pending verified statements from SARS) that crypto to crypto trade profits are not taxed at this point? i.e. BTC to ETH trades, etc, are not taxed. It's only when you cash out to ZAR that you are liable for tax (which is fair)?
We can't make any assumptions until SARS clarifies the issue. It it could be possible that each and any crypto to crypto trade could be seen as a CGT event, regardless of exchange.
 

Sly21C

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#47
We can't make any assumptions until SARS clarifies the issue. It it could be possible that each and any crypto to crypto trade could be seen as a CGT event, regardless of exchange.
SARS won't be able to trace crypto to crypto trades in a centralized exchange, I think.
 

SaiyanZ

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Jun 5, 2008
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7,194
#50
After today's drop, SARS will need to pay a lot of people that bought in a month ago at around R300k. Pay back the money.
 

HavocXphere

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Oct 19, 2007
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#52
Fiat donations between spouses are tax free to any amount... What about assets?
Yeah should be fine.

Correct, if the crypto wasnt held for 3 years it will be classified as trading which will fall under income tax and not CGT, in my view they would only be looking at what went in and what came out on FIAT side of your bank account, so your movement within crypto wouldn't be considered as long as you dont cash out for 3 years.
ai...crypto crew and tax. Many sighs...

Once an asset is disposed of the amount which is received by or which accrues to the seller of the asset constitutes the proceeds from the disposal.

Assets disposed of by donation, for a consideration not measurable in money, or to a connected person at a non-arm’s-length price are treated as being disposed of for an amount received or accrued equal to the market value of the asset. Amounts included in income such as a recoupment of capital allowances are excluded from proceeds.
http://www.sars.gov.za/TaxTypes/CGT/Proceeds/Pages/default.aspx

So yeah unless SARS issues guidance to the contrary disposing of one asset (BTC) in exchange for another asset (ETH) constitutes a disposal. Worse it has a fair chance of tainting the entire portfolio with trading activity & putting you straight into income tax space not even capital gains. Meaning you need the 3 year rule, so you can't shapeshift at all.

Will be interesting to see what SARS does though, since apply existing principles would effectively force people to liquidate a portion of their position to cover tax. Hell under existing laws a ton of people owe SARS a lot of money already due to the above. Don't think any of that is going to go down well. However if they don't tax it then this becomes the favorite way to avoid taxes overnight. So yeah will be interesting what they do.

After today's drop, SARS will need to pay a lot of people that bought in a month ago at around R300k. Pay back the money.
Capital losses aren't paid out - they rollfwd.
 

schumi

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Mar 26, 2010
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#53
SARS could soon tax your Bitcoin revenue

JOHANNESBURG - The South African Revenue Service (SARS) will soon provide clarity on the tax implications of transacting in cryptocurrencies like Bitcoin.

The tax regulatory, however, said while traders wait on guidelines, those who need to declare should do so now.

The use of Bitcoin has been rapidly growing in South Africa and it is so popular that people can pay with the cryptocurrency at certain spots.

SARS is treating cryptocurrencies under Capital Gains Tax, but it is an area it said it plans to explore further.

“Because by the very nature it lends itself to money laundering and anonymised trading, so yes we have to put in and place additional regulations. And to that end, we are going to release an interpretation note from our legal department to guide taxpayers as to their implications with respect to this Bitcoin technology," said the head of SARS' tax research, Randall Carolissen.
More at: https://www.enca.com/money/sars-could-soon-tax-your-bitcoin-revenue
 

dj2381

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Nov 22, 2010
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#54
So let me get this straight, SARS want us to declare our crypto currency which by their own admission isn't a currency and pay tax on said currency? Or only if you cash out into Rands?
 

Arthur

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Aug 7, 2003
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23,705
#56
Meanwhile, India's tax authority is sending out notices to tens of thousands of crypto players...

https://www.reuters.com/article/us-...ors-as-trading-hits-3-5-billion-idUSKBN1F8190

Reuters said:
NEW DELHI (Reuters) - India has sent tax notices to tens of thousands of people dealing in cryptocurrency after a nationwide survey showed more than $3.5 billion worth of transactions have been conducted over a 17-month period, the income tax department said.
We can be pretty sure our SARS guys have been sharing ideas with their BRICS partners.
 
Last edited:
Joined
Feb 26, 2018
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#57
Clients of Zebpay that held any measure of bitcoin preceding the Bitcoin Cash hard fork on 1 August 2017 were likewise given an equal measure of BCH once the cryptographic money was added to the stage.
 
Joined
Feb 26, 2018
Messages
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#58
Clients of Zebpay that held any measure of bitcoin preceding the Bitcoin Cash hard fork on 1 August, 2017 were likewise given an equal measure of BCH once the cryptographic money was added to the stage.
 
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