The authorities of the South African Republic intend to impose all types of transactions with cryptocurrencies to income tax.
According to the Federal service of South Africa’s taxes and duties (SARS), the tax will be levied on any income related to cryptocurrency: as from the sale of goods and services, and profit traders.
«Taxpayers are required to declare all taxable income related to crypto-currency, in the tax year in which they were received or accrued. Failure to do so may result in penalties and interest,» – said in a statement.
It is noteworthy that the cryptocurrency in Africa has no official status and the term «cryptocurrency» is not defined in the income tax Act, but are considered SARS as intangible assets.
Despite the fact that they are not treated as cash, cryptocurrencies can be assessed to determine the amount received or accrued, as provided in the definition of «gross income» in local legislation. In accordance with the customary income tax revenues associated with cryptocurrencies, may be subject to income tax under «gross income», to the document.
The statement also says that in 2018 SARS will explain the situation with the taxation of transactions with cryptocurrencies the value added tax.
In turn, the South African reserve Bank announced the creation of a self-regulatory non-governmental organization Project Khoka designed to investigate the development of cryptocurrencies and FINTECH industry and to set rules and industry standards in this area.
The organization will also explore the possibilities of blockchain Ethereum on the basis of Quorum for its application in the interbank calculations and clearing operations.
According to the head of the Central Bank of the Republic of South Africa Bridgette king, Khoka Project activities will contribute to the development of financial and industrial market in South Africa, creating conditions for the country’s competitiveness in the world.