South African Revenue Service Cracks Down On Crypto With New Tax Rules
The post South African Revenue Service Cracks Down On Crypto With New Tax Rules appeared on BitcoinEthereumNews.com.
In an update shared over the country’s news agency, the South African Revenue Service (SARS) has called taxpayers to declare their digital currencies and other crypto assets through its Voluntary Disclosure Programme (VDP). Given the increasing popularity of digital assets like Bitcoin and Ripple’s XRP among South Africans, the agency’s latest move isn’t surprising. Also, many have expected the tax policy following the Financial Sector Conduct Authority’s decision to declare crypto as a financial instrument. Crypto Assets And Transactions Growing In Scale Like other countries, South Africa is experiencing massive growth in crypto-related transactions. One media poll suggests that around 40% of the country’s population has used Ripple and other digital currencies for online payments. According to SARS’ internal data, around 5.8 million locals hold cryptos and engage in a considerable chunk of Bitcoin transactions. Media Release: SARS Warns About Crypto Asset Compliance SARS has noted the phenomenal growth of the use of various digital currencies by many South Africans. Prominent amongst these is the prevalence of crypto assets… https://t.co/EXlWYlYrVA pic.twitter.com/fDbggUzSA1 — SA Revenue Service (@sarstax) October 9, 2024 SARS Sees Risks Ahead, Calls For Voluntary Disclosure Of Crypto Assets Still, the local acceptance and growing popularity have some hazards. The national tax department alerts of intentional tax avoidance. Many residents reportedly fail to disclose their crypto assets when submitting tax forms. Total digital currency market cap currently at $2.1 trillion. Chart: TradingView SARS is thus looking over its Voluntary Disclosure Program in order to promote openness on bitcoin ownership. The agency urged traders and holders to disclose all their income assets—including digital currencies—in a notice dated October 9. The agency also said that it has gotten in touch with exchanges to assist with information disclosure on crypto transactions. Other third parties are also expected to cooperate with SARS in…
Filed under: News - @ October 14, 2024 3:03 am