Compliance · 6 min

Cryptocurrency Tax in South Africa - SARS Rules Explained

SARS treats cryptocurrency as an asset - meaning gains are taxable. Here's how crypto is taxed, what records to keep, and how to declare on your ITR12.15 May 2025 All articles

How SARS Classifies Cryptocurrency

SARS does not classify cryptocurrency as currency - it's treated as an intangible asset. This means disposals (selling, swapping, spending) are subject to either income tax or capital gains tax depending on your intent. If you trade frequently (buying and selling for profit), SARS considers this trading stock - gains are taxed as ordinary income at your marginal rate. If you hold long-term (HODLing), disposals are taxed as capital gains.

Capital Gains Tax (CGT) on Crypto

For the 2027 year of assessment individuals receive an annual R50,000 CGT exclusion (it was R40,000). Only 40% of the net capital gain above that exclusion is included in taxable income. In the 45% bracket the maximum effective CGT rate is still 18%. Calculate gain as proceeds minus base cost (what you paid, including exchange fees). FIFO or specific identification methods are accepted.

Income Tax on Crypto Trading

If SARS deems you a 'trader' (frequent buying/selling, short holding periods, intention to profit), your gains are taxed as ordinary income at marginal rates (18%-45%). There is no CGT exclusion for trading income. Losses can be deducted against other income. The distinction between investor and trader is based on your intention, frequency, and pattern - not a bright-line test. Keep a record of your trading strategy.

Declaring Crypto on Your ITR12

If capital gains: complete the Capital Gains section of the ITR12. If trading income: include under 'Other income' or 'Trade income'. SARS can access data from South African crypto exchanges and uses cross-border information-sharing agreements. Failure to declare is tax evasion - a criminal offence. Some exchanges provide annual tax summaries - use these as your starting point.

Record-Keeping Requirements

Keep records of every acquisition: date, amount, exchange rate (ZAR), fees, and the source of funds. Keep records of every disposal: date, amount received, exchange rate, fees. If you swapped one crypto for another, this is a disposal and an acquisition - both must be recorded. If you received crypto as payment for services (mining, staking, airdrops), the fair market value at receipt is taxable income. Keep records for at least 5 years.

Disclaimer: This is general guidance based on the South African Income Tax Act and published SARS Interpretation Notes as at the 2026/2027 year of assessment (1 March 2026 – 28 February 2027). It is not professional tax advice. Deductibility depends on your facts. Confirm current figures on sars.gov.za before you file.

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