TAX ON CRYPTOCURRENCY?
Do You Need To Declare Cryptocurrency Profits & Losses To SARS?
It has long been clear that regulation in South Africa was inevitable, regardless of this being contradictory to the philosophy of most of those involved in the crypto asset sector. This concern has now materialized. In short it means that cryptocurrency profits and losses need to be declared when filing your tax returns.
No matter what type of investor you are, we offer comprehensive, expert crypto tax assistance as part of a full service offering.
BITCOIN, ETHEREUM OR WHATEVER CRYPTO ASSETS YOU INVEST IN
HERE’S WHAT YOU NEED TO KNOW ABOUT CRYPTO & TAXES
Do You Need To Declare Cryptocurrency Profits & Losses To SARS?
Whilst there is still a lot of uncertainty in this area, the short answer is yes. The South African Revenue Service (SARS) is there to ensure that investors remain compliant, with harsh consequences where this is not the case. They are on the hunt for traders who see cryptocurrency as a profitable tax escape. SARS are sending out audit letters to taxpayers for this purpose and they are approaching crypto exchanges to obtain taxpayer information. With a staggering R3 billion allocated towards improving their technological and information-gathering infrastructure, taxpayers must not try to hide from SARS.
How do I declare Cryptocurrency Profits & Losses To SARS?
Crypto assets have little over a decade under the belt and have proven to be complex to say the least, which makes hypothesis a poor tax estimation to go on. With harsh penalties for SARS under-declarations and non-declarations, the question remains: how will tax be calculated on a novel investment class that is in such a diverse state of flux and uncertainty? Gains and losses can soar in days, leaving investors or SARS potentially clasping at straws. To avoid the harshest consequences, crypto investors should always consult a tax professional who is up to date with current legislation and plug compliance gaps before they arise – or at least before SARS approaches them (or their platform) first. Seeking assistance from a tax professional, is therefore always advised.
Protect Your Cryptocurrency Investment – Get Crypto Tax Help.
The rules surrounding crypto asset taxation are incredibly complex. Because crypto assets are not only novel but also constantly evolving, it means that the tax question is trapped in an ever-changing legal landscape, which confuses investors, regulators and many tax advisors alike. The hard reality is that a crypto asset is still a digital asset, and one you should protect. No matter what type of investor you are, we can help you with comprehensive and legitimate crypto tax assistance howsoever needed.
Owing to the unique nature of crypto assets, we do not embrace a one-size-fits-all approach. Our packages are tailored to your circumstances and investment portfolio, and cater to all types of crypto investors. We will assist with outlining your crypto asset profit or loss for the tax year, and serve to inform your disclosures to SARS with supporting documentation. All services are quoted up-front and before any work commences.