Tech

Crypto SA owners must pay digital currency taxes – or face ‘SARS sanctions’

Tax experts are now warning those who have invested in the crypto market that they “could be punished by SARS” if they do not report their income. The likes of Bitcoin, Dogecoin and Ethereum are all traded generously online, but for South Africans who benefit from digital currency, the tax authorities are also interested in your electronic wallets …

Do I have to pay taxes on cryptocurrency?

Thomas Lobban, legal manager for cross-border taxation, said this week that cryptocurrency owners in South Africa mistakenly believe their cyber profits are already subject to capital gains tax. This is not the case, however, and the representative of Tax Consulting SA believes that SARS seeks to “make examples” from non-compliant employees:

“In the overwhelming majority of cases, taxpayers have been informed by a tax professional that their cryptocurrency profits will be subject to capital gains tax (‘CGT’) rather than normal tax. CGT is levied at an effective rate lower than normal tax, but crypto is not subject to CGT in most cases.

“Although we are not aware of any convictions obtained [for failing to pay tax on cryptocurrency earnings] yet, one can assume that SARS will soon seek to set an example. “ | Thomas lobban

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To be safe, crypto owners urged to stay compliant, and “approach SARS first” to report the profits or losses they have made with their income. Failure to notify the tax authorities could lead to serious disputes:

“It is crucial that taxpayers make sure they meet their obligations and stay in compliance. In order to stay on the right books of SARS and avoid sanctions, investors should first approach SARS and report crypto profits and losses in their returns.

“For unpaid historical unpaid debts, there are avenues of correction without the thread of criminal liability; however, the options available to taxpayers become severely limited once SARS notifies them of an impending or potential audit.

Crypto SA owners must pay digital currency taxes – or face ‘SARS sanctions’

Source link Crypto SA owners must pay digital currency taxes – or face ‘SARS sanctions’

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