The South African Revenue Service (SARS) is introducing measures to enforce tax compliance on crypto assets. Taxpayers are required to declare holdings of digital currencies.
Tax Authority Pushes for Compliance
More than 5.8 million South Africans hold crypto assets, yet many have not declared them in their tax filings. SARS is engaging with the Financial Sector Conduct Authority (FSCA) to obtain information on registered crypto asset service providers and is receiving data directly from local exchanges.
Current Crypto Regulation Steps
In October 2022, FSCA declared crypto assets as a financial product under the Financial Advisory and Intermediary Services Act. By July 2024, FSCA received 383 license applications, approving 63, as efforts to regulate the crypto industry in the country continue.
Cooperation with FSCA and Global Efforts
SARS is enhancing its audit teams to support compliance initiatives in crypto, using AI and machine learning. It also exchanges information with other tax authorities worldwide through multilateral agreements.
The South African Revenue Service is proactively implementing measures for tax compliance within the crypto industry, collaborating with both national and international bodies.
