Where to declare your cryptocurrency holdings on your tax return

deweyzeph

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Apr 17, 2009
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9,099
I dont understand why i should pay tax on crypto to SARS when my salary is taxed and when i purchase the crypto i hold it long term. I am the one taking the risk and should the crypto be worth nothing in 5 years will SARS compensate me for my loss. My point being i take the risk on my own if they want a stake in my revenue generated then they should also be liable when their is lose.

You only pay tax when a taxable event has occurred. You do not pay tax when you are just holding your crypto and no taxable event has occurred.
 

Speedster

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May 2, 2006
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I dont understand why i should pay tax on crypto to SARS when my salary is taxed and when i purchase the crypto i hold it long term. I am the one taking the risk and should the crypto be worth nothing in 5 years will SARS compensate me for my loss. My point being i take the risk on my own if they want a stake in my revenue generated then they should also be liable when their is lose.
If you're only hodling no tax is due. Yet.
 

Snyper564

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Oct 1, 2008
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You only pay tax when a taxable event has occurred. You do not pay tax when you are just holding your crypto and no taxable event has occurred.
it gets fuzzy if you trade(not hodl) you have a deemed disposal last day of the year and then a deemed acquisition first day of the new year. meaning you could trigger a profit or loss on the last day of the year. buying quickly to make a "loss" wont mitigate this

It looks like this

You buy R100k day 1 (expense) the value is now R120k last day of year
120-100=20k income to declare.

I am specifically referring to instances of trading not holding long term
 

superlekkerza

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Sep 1, 2021
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I believe in mutual respect, and treating everyone how I would like to be treated. Maar F0k SARS is a bunch of f0kken k0nte.
Anything and everything to squeeze the last drop out. I wonder how much longer people will stand for this absolute BS before there is a proper revolt.
You SARS and the goverment gives me f0kol, you provide me f0kol, but you just want want want. Ons het niks meer nie, maar julle soek nog. Loop f0kken vlieg man. Bliksemse d0nners. My Crypto het mooi niks met julle te doen nie.

We are using SA infrastructures every day. Damn, too many people here are taking things for granted. Move to Zim and learn to appreciate why SA is the most awesome place to live in
 

deweyzeph

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Apr 17, 2009
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it gets fuzzy if you trade(not hodl) you have a deemed disposal last day of the year and then a deemed acquisition first day of the new year. meaning you could trigger a profit or loss on the last day of the year. buying quickly to make a "loss" wont mitigate this

It looks like this

You buy R100k day 1 (expense) the value is now R120k last day of year
120-100=20k income to declare.

I am specifically referring to instances of trading not holding long term

I can't see anything in the Income Tax act or tax regulations where it states that crypto held as trading stock is subject to a deemed disposal at the end of the tax year.
 
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Snyper564

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I can't see anything in the Income Tax act or tax regulations where it states that crypto held as trading stock is subject to a deemed disposal at the end of the tax year.
22(1) of the income tax act.

Maybe not "deemed disposal" but inclusion in you taxable income

Section 22(1)(a) of the Act sets out the general rule pertaining to closing stock held and not disposed of which must be included in the income of a taxpayer at the end of the year of assessment.

 

Snyper564

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lol you guys, sars will be laughing issuing the 200% penalties on top of the tax liability
 

Dimpie (COMPUTEK)

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No-one in the crime, cybercrime, hawks divisions could help me trace my stolen crypto a few years ago ... even asked for international assistance ... no-one lifted a finger ....

So, If I now steal my own crypto and move it through 100's of wallets split and joined into a 1000's more, gaan hulle NOU help sodat die tax uitgewerk kan word ... I fncking thing think not :mad:
 

RaptorSA

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Sep 2, 2008
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If you can find my dead body first you're on the right track, your crypto tax can be found just over it.

1631885850907.png
 

Odracir

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May 13, 2009
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Will they tax my little bit of btc that isn't worth moving because moving the little I have will be swallowed up by the network fees. So why must I declare something I can't yet use.
 

Speedster

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May 2, 2006
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Will they tax my little bit of btc that isn't worth moving because moving the little I have will be swallowed up by the network fees. So why must I declare something I can't yet use.
It's like people don't get the basic principle of taxation. Income (profit) is taxed, not assets.
 

Wary GOM

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Aug 23, 2019
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I only make a loss at the moment. Do I get money back? Not sure they're interested in my piddly R2500.
Do you still hold that loss-making crypto? If so it isn’t yet a realized loss. Surely this isn’t reportable yet?

Anyway, SARS doesn’t pay us anything if they possibly can avoid it.
 

hj007

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Aug 30, 2006
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It's interesting that they ask for crypto value at cost, not market value. I guess it's in line with all the other assets at cost but considering the large run up you your R10k of crypto could be worth millions, or still close to R10k if you bought this year. Seems that it doesn't provide them with much info besides that you're acknowledging that you own crypto. I assume it reduces the red audit flag, vs someone saying they don't own any at all.
 

PseuDohNom

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Jul 28, 2020
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You can claim a loss, but they ringfence it. It gets kept aside for the next year when you make profit.
 

Swa

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May 4, 2012
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So do you have to declare if you held any crypto at any point during the year? Or only if you still hold crypto at tax return time?

Because what is the point of saying you had, say R50 000 of bitcoin last year when you sold it a while back. Also, what is the value of the crypto that you put on your return? Is it the value 1 second before you click submit on your tax return? What about exchange rates?

It is all pointless and clear as mud.
That's the thing, nobody declares their assets to Sars so nobody is tax compliant. That house you own? The second property? Your car? The unit trust? Your PC? Cellphone? Printer? All assets that can be traded for a profit or loss, but Sars doesn't enforce this across the board and go after the people not declaring these because it's administratively impossible to comply.

Also funny how some are applying FX rules here where the last time I said this I was shot down.
 

Pegasus

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May 17, 2004
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So sell all your crypto on 27 feb each year and rebuy 29th/1 March.
Do you only pay tax on your salary that was paid on 28 Feb? Or on all of your salary received throughout the year?
 
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