“The future of money is digital currency” (Bill Gates)
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” here, 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!