Crypto Wallets vs Exchange Sales — CGT Still Needs a Base Cost

A transfer is not automatically a gain

Sending Bitcoin from an exchange to your own hardware wallet, or from one exchange to another in your name, is usually a change of custody. SARS CGT is about a disposal — a sale, a trade for another asset, or spending crypto as if it were cash. Keep the txid and the date. Do not invent a “loss” because the wallet balance looks smaller after fees.

What is a disposal

Sell ZAR on an exchange. Swap ETH for USDT. Pay a supplier in crypto. Those are disposals. The proceeds are what you received (or the rand value). The gain is proceeds minus base cost (what you paid, including allowable costs). The annual CGT exclusion for individuals in 2026/2027 is R50,000; inclusion is 40%. Confirm on sars.gov.za.

Wallets do not hide the history

A self-custody wallet does not reset base cost. If you bought at R80,000 on an exchange and later sell from a wallet, the base cost is still the purchase (plus allowable costs), not zero and not “wallet import”. Traders who deal as a business can be on income account instead of CGT — that is facts, not a slogan.

What Taxzi will not do

A crypto-exchange deposit is flagged for review. We do not treat the whole credit as taxable gain or as a deduction. You reconstruct lots. You file. No guaranteed refund.

Questions

Do I pay CGT when I move coins to a Ledger?

A transfer to your own wallet is usually not a disposal. Keep records. Selling later is.

Is every exchange withdrawal a capital gain?

A ZAR off-ramp is typically proceeds. You still need base cost to compute the gain.