The South African Revenue Service (Sars) deems crypto-currencies such as Bitcoin and Ethereum as intangible assets and therefore warns taxpayers to declare gains and losses in these currencies.
Sars says the responsibility is upon taxpayers to declare their crypto-currency gains and losses on their tax returns. It says failure to do so will lead to interest and penalties.
Legal Counsel Senior Manager at Sars, Andrew Wes says, “I think Bitcoin and Ethereum do present the challenge to Sars because the nature of crypto-currency is such that it is very difficult to detect. So, once we seem to have a firm grip on how we are going to tax these crypto-currencies, the detection is going to be a bigger issue and we very busy working on that at the moment, anticipating that crypto-currencies will grow into bigger thing.”
Click below for more:
