Crypto earnings & Capital Gains Tax

Matata

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Oct 30, 2020
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Any guys of you guys know of government who have paid people provisionally in Bitcoin instead of ZAR and how they were taxed. Would they also be taxed like how @Snyper564 mentioned in post #118.
 

Snyper564

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Any guys of you guys know of government who have paid people provisionally in Bitcoin instead of ZAR and how they were taxed. Would they also be taxed like how @Snyper564 mentioned in post #118.
This is what you looking at in SA the cash or otherwise, in this case crypto is the otherwise

The term “gross income” is broadly defined in section 1(1) as the total amount, in cash or otherwise, received by or accrued to a resident during a year of assessment which is not of a capital nature.
 

Matata

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Oct 30, 2020
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98
This is what you looking at in SA the cash or otherwise, in this case crypto is the otherwise

The term “gross income” is broadly defined in section 1(1) as the total amount, in cash or otherwise, received by or accrued to a resident during a year of assessment which is not of a capital nature.
Thank you! still wrapping my head around these things. So much to learn.
 

e4et

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Nov 2, 2011
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Simple excel is sufficient overall.

For example.

Expense.
R100 000 1 JAN 2021

INCOME
R120 000 3 JAN 2021

PROFIT
R20 000

I recommend looking at Sars table and take a bracket or twos up percentage for example if you are now 25 rather keep say 30 percent of the profit aside rather more than less.

Ensure you keep all banking records sales and purchases.

Last thing you want is 120k income with no proof of 100k expense.
Hi.
Do you have a "template" spreadsheet we use to keep track and assist with calculations ?
 

Snyper564

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Hi.
Do you have a "template" spreadsheet we use to keep track and assist with calculations ?
I literally do mine in excel

I have a heading of expenses and then just group them under sub headings with dates and zar values

Data, bank charges, crytpo purchases

Then the same for income with dates

I just included the name of the exchange so it's easier for me to find

Nothing fancy
 

Syphonx

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Jun 25, 2008
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At what point does crypto profit fall under CGT rather than personal income tax? Cashing out after 366 days?
 

Syphonx

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Can be considered CG if your history isn't that of trading. It's really about intent and circumstances. Time can influence that.
That's tricky. I don't day trade, but I do sometimes change coins if I think its under performing.
 

TofuMofu

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That's tricky. I don't day trade, but I do sometimes change coins if I think its under performing.
Same with me, I don't trade, but I do change to a different token every now and then for growth, haven't done that a lot, but it would be hard to prove how I got to where I am now lol. It's been over 4 years of doing so.
 

Thor

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Simple excel is sufficient overall.

For example.

Expense.
R100 000 1 JAN 2021

INCOME
R120 000 3 JAN 2021

PROFIT
R20 000

I recommend looking at Sars table and take a bracket or twos up percentage for example if you are now 25 rather keep say 30 percent of the profit aside rather more than less.

Ensure you keep all banking records sales and purchases.

Last thing you want is 120k income with no proof of 100k expense.

..
 
Last edited:

Snyper564

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How does this example for, say... Completely hypothetical... You bought 15 bitcoin from @$247, @$988 and @$1800.

And you want to sell them now 15 @$50 000.

But you don't have any record of those initial purchases (for all Sars knows, you mined them in the beginning).
Then you have no base cost or expense, it's 0. So (50000 minus 0) x 15 at cgt or income tax rate
 

Hamster

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Aug 22, 2006
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37,201
Then you have no base cost or expense, it's 0. So (50000 minus 0) x 15 at cgt or income tax rate

@Thor, I think it is something like this:

R700,000 ($50,000) x 15 = R10,500,000
R10,500,000 - R40,000 exclusion = R10,460,000

R10,460,000 x 40% = R4,184,000 is added to your annual income, so you are in the 45% tax bracket. Assuming you earned another R500,000 as a salary, you do an income tax calculation on R4,684,000 which is R1,950,000.

Or something to that effect. You'll obviously subtract the base cost from the initial amount.
 

Thor

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@Thor, I think it is something like this:

R700,000 ($50,000) x 15 = R10,500,000
R10,500,000 - R40,000 exclusion = R10,460,000

R10,460,000 x 40% = R4,184,000 is added to your annual income, so you are in the 45% tax bracket. Assuming you earned another R500,000 as a salary, you do an income tax calculation on R4,684,000 which is R1,950,000.

Or something to that effect. You'll obviously subtract the base cost from the initial amount.
Ahh Okey, I understand the concept a bit better now.

Going to need to get padjakkels involved to do my taxes if this bubble continues.


Disclaimer: I Thor do not own any crypto whatsoever, it's purely academic.
 

Swa

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May 4, 2012
Messages
27,109
That's tricky. I don't day trade, but I do sometimes change coins if I think its under performing.
That is tricky, but changing coins is seen as a barter trade so it's considered trading if it's regular and not over a long period.
 

TofuMofu

Honorary Master
Joined
Aug 11, 2008
Messages
10,109
@Thor, I think it is something like this:

R700,000 ($50,000) x 15 = R10,500,000
R10,500,000 - R40,000 exclusion = R10,460,000

R10,460,000 x 40% = R4,184,000 is added to your annual income, so you are in the 45% tax bracket. Assuming you earned another R500,000 as a salary, you do an income tax calculation on R4,684,000 which is R1,950,000.

Or something to that effect. You'll obviously subtract the base cost from the initial amount.
How did you get to the 40% (blue text)
 
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