Crypto Assets

02/21/2024

Crypto assets are regarded as a financial instruments for Income Tax purposes and not as a currency. As such the profit or loss on crypto asset trading could either be taxed as normal income if the intention of the investor was to speculate or alternatively the profit or loss could be regarded as a capital gain or loss if the intention of the investor was to hold it long-term as a capital investment.

For VAT purposes the exchange of crypto assets into South African Rand are regarded as an exempt supply.

Disclaimer: The information contained in this article is a summary of current legislation and budget proposals proposed by the Minister of Finance on the 21st February 2024. We suggest that you do not act solely on material contained in the booklet as the nature of the information contained herein is general and may in certain circumstances be subject to misinterpretation. In addition, the budget proposals may not include all legislative adjustments which could be made in the near future. Consequently we recommend that our advice be sought when encountering these potentially problematic areas. While every care has been taken in the compilation of the booklet, no responsibility of any nature whatsoever shall be accepted for any inaccuracies, errors or omissions.