“The future of money is digital currency” as Bill Gates put it, and certainly interest in crypto currencies – like Bitcoin, Ethereum, Polkadot, Solana and the many others popping up all the time – is surging dramatically.

Of growing importance therefore is that anyone holding or planning to buy cryptocurrency, needs to understand the tax angle and be aware of any tax implications.

For a new “from the horse’s mouth” perspective, read SARS’ webpage “Crypto Assets and Tax” here, which was first published on 27 August 2021 and provides guidance on (at date of writing – expect this webpage to evolve) these questions –

• What is it?

• How did we get here?

• Do I need to pay tax on crypto assets?

• How will it work? (With an example of the ITR12 Income Tax Return for the 2020/21 tax year)

• How is SARS tracing crypto asset transactions?

There are still grey areas here – and many pitfalls – so be sure to take specific professional advice.

Should you need our advice or assistance, contact our experienced Tax Department or your contact Partner at MGI Bass Gordon. Send an email to info@bassgordon.co.za or call us on 021 405 8500.

For additional reading:

• Plenty of online commentary is available on this subject, like “South Africa issues guidance on crypto asset tax, but the taxman struggles” that can be read on Moneyweb.

The article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.