Tax / Bank Implications?

[zulucat]

Sounds like a scam to me. Next thing, the poster will ask some of you to help with 'clearance' fees...

 

[TheRidDlerX]

Sounds like a scam to me. Next thing, the poster will ask some of you to help with 'clearance' fees...

Hehe if ur being serious eeeeeasy there Cap'n.. If not then yea I can see how a 419 can be twisted into something similar, why not

 

[TofuMofu]

A CGT event will be triggered. You'd need to declare this in your 2020 tax return if you sell the Bitcoin between now and February 2020. 40% of your capital gain will get added to your taxable income and you'd be paying either 41% or 45% tax on that. Luno would report this to SARS too so if you didn't declare it, SARS would still know.

So say you bought a token/coin for real cheap (R150k) and made R10mil on it, will you then pay income tax on 10mil-150k/40%?

 

[TheRidDlerX]

So say you bought a token/coin for real cheap (R150k) and made R10mil on it, will you then pay income tax on 10mil-150k/40%?

From what I gathered from FNB guy ur taxed like normal income tax on 40% of ur gains minus something like a 40k rebate. So something like

(((10mil-150k)*0.4)-40k)*incometax%

 

[TofuMofu]

From what I gathered from FNB guy ur taxed like normal income tax on 40% of ur gains minus something like a 40k rebate. So something like

(((10mil-150k)*0.4)-40k)*incometax%

Ouch...

 

[Snyper564]

Ouch...

well thats tax for you...

 

[TofuMofu]

well thats tax for you...

Yep...

You take all the risk and gov takes all the reward

 

[netcruiser]

From what I gathered from FNB guy ur taxed like normal income tax on 40% of ur gains minus something like a 40k rebate. So something like

(((10mil-150k)*0.4)-40k)*incometax%

That's not too bad (as far as tax goes). Even at 45% marginal tax that's around 0.4 * 0.45 = 18% effective tax rate.

Better than paying income tax of 45% on it.

 

[TofuMofu]

That's not too bad (as far as tax goes). Even at 45% marginal tax that's around 0.4 * 0.45 = 18% effective tax rate.

Better than paying income tax of 45% on it.

True, that would suck lol

 

[Snyper564]

That's not too bad (as far as tax goes). Even at 45% marginal tax that's around 0.4 * 0.45 = 18% effective tax rate.

Better than paying income tax of 45% on it.

But we are talking about if this is correctly classified as capital vs income with an amount of 10m I would make sure that it was correctly classssified

 

[Speedster]

But we are talking about if this is correctly classified as capital vs income with an amount of 10m I would make sure that it was correctly classssified

Is the threshold still 3 years?

 

[Snyper564]

Is the threshold still 3 years?

In simple terms yes but this sort of applies more to shares. There is a lot of case law that can be referred to in this case and if it appears that it is speculative and not capital in nature its income not CGT