South Africa requires taxpayers to report all income related to crypto-currencies

The tax authority of South Africa has warned the country’s taxpayers to always declare all their transactions related to crypto-currencies. In addition, it has also introduced measures that will be advantageous to those who are trader of digital currency.

If you missed the announcement, here are the details in English :

The statement of income related to crypto-currencies will be mandatory

The control service of the revenue of south african (SARS) announced on Friday that it expects everyone says the gains of crypto-currencies. This authority has stated that it is the responsibility of the taxpayers of south africans to declare all taxable income related to the virtual currency. The declaration is mandatory at the risk of incurring penalties.

Source : Steve Buissinne, Pixabay. South Africa requires taxpayers to report their income related to the digital currency.

The SARS has indicated that he has had to face numerous calls of citizens to provide guidance on how to deal with the tax returns on the crypto-currencies. However, he claimed that such a debate would be useless for the moment. SARS has thus tried to explain how this fits into the current framework. Any person who is not sure of certain transactions involving crypto-currencies may also seek guidance from the agency.

The tax framework

The agency explained that crypto-currencies are not considered by SARS as a currency is subject to tax on income, but rather as assets of an intangible nature. Transactions of digital currencies and can therefore be imposed on the income account. When goods or services are exchanged for crypto-currency, the transaction is considered a barter trade.

In addition, the taxpayers of south africans now have the right to declare the costs related to the purchase of virtual currency. In addition, the SARS will not require VAT. In December 2017, News Bitcoin has revealed that the agency was in the process of exploring solutions to controlling and taxing the trading of Bitcoins. The agency met with companies operating in this sector to provide the tools for monitoring transactions.

Source : NewsBitcoin