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In South Africa, a tax on profits derived from the conduct of cryptocurrency transactions

In the country's leadership, they announced their intention to tax all transactions with digital currencies.

10.Apr.18 12:17 AM
By John M Jeffcoat


In South Africa, a tax on profits derived from the conduct of cryptocurrency transactions
As it became known, the leadership of South Africa intends to introduce a profit tax from all crypto-currency transactions in the country. This was reported by the Federal Service for Taxes and Dues of the Republic of South Africa (SARS).

SARS said that the tax would extend to any profit received from operations with the cryptocurrency, whether it is the sale of goods, raw materials, the provision of services or benefits received by traders. Moreover, taxpayers are obliged to declare their crypto-currency revenues by submitting reports for the past year. For refusal to declare crypto-currency profit or its concealment, penalties, and fines will be imposed.

The paradox of the situation is that officially South Africa has not yet recognized the cryptocurrency, no legislative field in the country would regulate its functioning. The Tax Law of the Republic of South Africa also does not contain rules for controlling actions with crypto-currencies. There is no official name yet. But, despite this, the profit received from operations with digital currencies will be regulated by the state in analogy with the definition of gross income. As we already mentioned earlier, it was recently announced the creation of a self-regulating non-governmental organization that will deal with the establishment of rules and industry standards in the crypto-currency area, possibly the activity of this organization will also clarify the work of tax legislation on the issue of profits from cryptocurrency transactions.

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