As the use of cryptocurrency grows, with over 5.8 million South Africans holding digital currencies, the South African Revenue Service (SARS) is ramping up enforcement on undeclared crypto assets and trades. Sars urges taxpayers to declare crypto holdings.
As a registered taxpayer, you should always complete your income tax returns accurately, reflecting all sources of income, interest and yes, also profits on crypto and trading. Remember that you sign an electronic acceptance that your return is filled correctly and accurately.
Taxpayers are reminded to report all crypto-related income and holdings, as SARS is actively acquiring information from local exchanges and partnering with global tax authorities to track offshore accounts.
Next month, a new multilateral agreement will strengthen the cross-border exchange of crypto account information, further tightening compliance measures. SARS is also utilizing artificial intelligence and bolstering its audit teams to ensure transparency in this space.
For those concerned about crypto compliance, SARS recommends taking advantage of the Voluntary Disclosure Programme (VDP), but note that once flagged for audit, you cannot apply for the VDP. Now is the time to ensure your crypto tax reporting is up to date.
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