South African crypto traders have reportedly started receiving notices from the South African Revenue Service (SARS) indicating that their tax affairs are under review. The revenue collector is gathering information from various crypto-asset exchanges to assess compliance. Traders who fail to provide requested information could face criminal charges under the Tax Administration Act. SARS may also investigate historical non-declaration of crypto ownership. According to Tax Consulting SA, crypto traders should not assume that past non-compliance will go unnoticed. However, SARS has not provided clear guidance on whether crypto transactions are deemed capital gains or income. Therefore, keeping accurate records of gains and losses on local and foreign crypto exchanges remains challenging.
