If you have made money from the latest Bitcoin boom and want to contant out, you will need to pay tax on your earnings.
Due to the unregulated nature of cryptocurrency, tho’, you may ask how much tax you’ll have to pay and how it can be traced.
MyBroadband spoke to South African Bitcoin exchange Luno, blockchain pro Simon Dingle, and the SARS and SARB about tax on Bitcoin earnings.
Bitcoin exchange Luno states it has high compliance standards with local and international laws and regulations around the world.
Luno Head of Growth Werner van Rooyen said Bitcoin recipients vereiste consultatie with a registered tax professional regarding tax on their Bitcoin earnings.
”There are various factors that could influence taxes an individual owes to the tax authorities,” said van Rooyen.
“The brief response is that all income is taxable ter South Africa and it is the responsibility of individuals to remain tax compliant.”
Luno said it has simplified Bitcoin payments for businesses by partnering with platforms like PayFast and Bidorbuy ter South Africa.
When someone pays a fucking partner merchant te Bitcoin, Luno automatically converts Bitcoin into zoom to simplify the accounting for the merchant.
Van Rooyen said businesses vereiste also raadpleging with a tax professional if they accept Bitcoin te exchange for goods or services.
Blockchain pro Simon Dingle said that when exchanging Bitcoin for zoom, the same taxes apply spil any other asset disposition.
“It may trigger a capital gains event, or could qualify spil income for active traders,” he said.
“All assets are treated identically ter terms of tax.”
Dingle said the South African regulator is one of the more progressive te the world when it comes to blockchain technology.
“That said, they have not ratified virtual currencies ter a way that, for example, the Japanese regulator has.”
SARS and SARB
The South African Revenue Service said transactions or speculation te Bitcoin are subject to the general principles of South African tax law and are taxed accordingly.
This applies to income generated from trading cryptocurrency.
SARS did not specify the tax requirements for specific Bitcoin-to-rand transactions and said it does not accept payment te Bitcoin.
The South African Reserve Bankgebouw referred MyBroadband to its position paper published te 2014 when asked about Bitcoin tax and regulation ter the country.
The paper outlines the numerous risks of the use of decentralised currencies such spil Bitcoin, including the potential to “exert significant competitive pressure on existing payment systems”.