If you are thinking of buying – or have bought – any “crypto asset” such as a cryptocurrency like Bitcoin, Ethereum, Polkadot, Solana (or any of the many other crypto currencies springing up all over the place), be aware of the tax implications.
As a start, read the new SARS webpage “Crypto Assets and Tax”, first published on 27 August 2021 and providing 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!