The South African Revenue Service (SARS) has taken a clear stance: crypto is taxable. It doesn’t matter if you’re buying Bitcoin, trading altcoins, or staking tokens — SARS expects you to declare your gains.
Here’s the breakdown of how crypto is taxed in South Africa in 2025 👇
🔎 How SARS Classifies Crypto
- SARS defines crypto as a financial instrument, not legal tender.
- It’s subject to existing tax laws, not a separate crypto regime.
- The main distinction:
- Capital Gains Tax (CGT) → for long-term investors.
- Income Tax → for active traders, miners, and those earning crypto.
đź’° Capital Gains Tax (CGT)
- Applies when you dispose of crypto (sell, swap, spend, gift).
- Inclusion rate: 40% of gains are added to taxable income.
- Effective rates:
- Individuals: up to 18% (depending on bracket).
- Companies:Â 21.6%.
- Trusts:Â 36%.
Example:
- Buy BTC for R100,000.
- Sell for R160,000.
- Profit = R60,000.
- 40% = R24,000 added to taxable income → taxed at your marginal rate.
🧾 Income Tax on Crypto
If SARS considers your activity to be a trade (frequent, organised, profit-seeking), profits are taxed as income, not capital.
- Mining → always taxable as income.
- Staking/DeFi rewards → taxable as income when received.
- Trading as a business → taxed at full income tax rates (up to 45% for individuals).
👉 Unlike CGT, 100% of income is taxable.
🎨 NFTs & DeFi
- NFT sales → usually capital gains; if you’re a creator, sales may be income.
- DeFi lending/yield farming → returns taxed as income on receipt, CGT on later disposals.
📉 Losses
- Capital losses can offset capital gains.
- Trade losses (if classified as income) may be deductible against other income, if SARS accepts it’s a bona fide trade.
🕵️ SARS Enforcement in 2025
- SARS uses exchange reporting and blockchain analytics to track crypto activity.
- Crypto declared under “other assets” or “financial instruments” in returns.
- Penalties for non-compliance:
- Administrative fines
- Interest on unpaid tax
- Potential criminal charges for deliberate evasion
🛠️ Compliance Checklist
- Determine if you’re an investor (CGT) or trader (income tax).
- Keep detailed records of every transaction (date, ZAR value, purpose).
- Report staking/mining income in the correct tax year.
- Declare foreign exchange accounts holding crypto if applicable.
âś… Key Takeaways (South Africa)
- SARS taxes crypto as either capital gains or income.
- CGT effective rates up to 18% for individuals.
- Income tax up to 45% if trading/mining.
- Staking, mining, and DeFi = income on receipt.
- Enforcement is tightening — SARS actively monitors crypto in 2025.