Hypothetical scenario

[AlpineLemming60]

Hi All

Chatting to folks recently, and the discussion moved to withdrawing crypto (BTC & ETH) to ZAR locally on Luno or VALR. Hypothetically (of cos) what's some ways to reduce the tax implications or remove them all together ?

 

[Snyper564]

Hi All

Chatting to folks recently, and the discussion moved to withdrawing crypto (BTC & ETH) to ZAR locally on Luno or VALR. Hypothetically (of cos) what's some ways to reduce the tax implications or remove them all together ?

ZERO ways to legally remove them.

To reduce its simple you pay tax on profit. SO all linked expenses are deductible.

In short.

You buy Btc for R100k sell for R110k, pay tax on R10k.

If you have expenses you can tie to the trade for example another R1k then you reduce the R10k by another R1k and pay tax on R9k.

Above is tax 101.

If you have done any sort of trading or conversion dont even think about CGT vs income tax. Its income tax

 

[AlpineLemming60]

Got it - thank you

ZERO ways to legally remove them.

To reduce its simple you pay tax on profit. SO all linked expenses are deductible.

In short.

You buy Btc for R100k sell for R110k, pay tax on R10k.

If you have expenses you can tie to the trade for example another R1k then you reduce the R10k by another R1k and pay tax on R9k.

Above is tax 101.

If you have done any sort of trading or conversion dont even think about CGT vs income tax. Its income taxGo

 

[NarrowBandFtw]

hypothetically ... are you asking for tax avoidance or tax evasion tips?

 

[Snyper564]

hypothetically ... are you asking for tax avoidance or tax evasion tips?

Reduce -> avoid -> legal
Eliminate -> evade -> illegal

 

[NarrowBandFtw]

Reduce -> avoid -> legal
Eliminate -> evade -> illegal

indeed, so its important to clarify

 

[AlpineLemming60]

definitely reduce - never evade !

 

[Snyper564]

definitely reduce - never evade !

Then refer to my post above