South Africa's cryptocurrency tax minefield - Webber Wentzel

[Jan]

Cryptocurrency investing a tax minefield in South Africa

A minefield of taxes lies ahead for crypto asset transactions in South Africa, where a gain in selling Bitcoin and other cryptocurrencies is taxed as either revenue or capital.

It is according to Joon Chong, a partner and tax specialist at Webber Wentzel, the leading full-service law firm on the African continent.

 

[Agent_Smith]

Intention may be difficult to prove​

The taxpayer’s intention is key in determining whether gains or losses from the disposal of crypto assets are capital or revenue in nature.

However, taxpayers face an uphill battle to prove that their gains or losses are capital in nature due to the high risk and volatile nature of this asset class.

So why not just simplify it and say if you hold it for a certain period, it's capital. Surely it's not rocket science?

 

[deweyzeph]

This is not news. The tax treatments highlighted in this article have always been applicable to cryptocurrency or cryptoassets since the very beginning.

 

[NarrowBandFtw]

So why not just simplify it and say if you hold it for a certain period, it's capital

because SARS makes more money when they call it income

and because f-you ZA tax payer

that's why

 

[wernervn]

Chong... Chung... Cha?

Its Chong according to the website mentioned