Guide to Crypto Taxes in South Africa for 2026

• Capital gains: For the 2027 tax year, individuals have an annual CGT exclusion of R50,000. After the exclusion and any applicable losses, 40% of a net capital gain is included in taxable income. The maximum effective CGT rate for an individual remains 18%.

• Ordinary income: crypto earned from mining, proof-of-stake validation, services, or airdrops received for work is taxed at your normal rate up to 45%.

• Companies: 80% inclusion at 27% CIT gives 21.6%.

• Trusts: 80% inclusion at 45% gives 36%. Special trusts, such as those created for a person with a disability, use the individual 40% inclusion rate instead.

Crypto can fall on revenue or capital account, and the distinction depends on the facts. SARS considers factors such as why you acquired the asset, how you used it, the frequency of your transactions, your business or occupation, and how long you held it. Holding period is only one factor, and there is no fixed holding period that automatically gives crypto capital treatment.

Crypto held as a long-term investment may fall on capital account, while frequent or business-like trading may be taxed as ordinary income. When crypto is held on capital account, disposals are subject to CGT rules, including the applicable inclusion rate and annual exclusion.

Buying and holding cryptocurrency

Purchasing crypto with rand does not, by itself, create a disposal. Transfers between wallets you control may depend on the transfer's facts and mechanics, so keep records showing both sides of the transaction.

Save exchange records, wallet histories, and other documents showing the purchase date, quantity, and rand value. You may need those records later to establish the asset's tax treatment and base cost.

Selling cryptocurrency

A sale for rand, a swap for goods, or another transaction that disposes of crypto can create a taxable gain or loss. For crypto held on capital account, calculate the capital gain as proceeds minus base cost. Individuals have a R50,000 annual CGT exclusion for the 2027 year of assessment. After the exclusion and any applicable losses, 40% of the net capital gain is included in taxable income.

SARS says the base cost of crypto held as a capital asset must be determined using either specific identification or first-in, first-out (FIFO). The weighted average method isn't allowed for crypto, so keep detailed trade records to support whichever method you use.

Mining and staking cryptocurrency

SARS treats crypto mining as a trade. Mined coins or tokens count as income equal to their ZAR market value when you receive them, usually when they're added to your wallet. You can deduct related costs such as electricity, and claim wear-and-tear allowances on mining hardware.

Under SARS's 2026 draft guidance, rewards earned by a proof-of-stake validator are included in gross income at their market value. Crypto acquired through mining or validation and held for sale may also be treated as trading stock. Other staking arrangements should be considered based on their specific structure.

Crypto-to-crypto trades taxed

SARS treats swapping one crypto asset for another as a barter transaction. You dispose of the coin you give up, and your proceeds are the market value of the coin you receive. The value of the asset you give up is generally used to determine the cost of the crypto you receive. Tax applies at the time of the swap, not when you eventually cash out to rand. If you convert to rand first and then buy another coin, that's a sale followed by a separate purchase.

Receiving cryptocurrency as payment

When you receive crypto as salary, the market value is treated as employment income, and your employer must withhold and pay over the employees' tax (PAYE) on it. When you accept crypto as freelance fees or payment for goods or services, value it in rand on the date you receive it and report it as income on the return that applies to you, such as the ITR12 for individuals or the ITR14 for companies. If you are a registered VAT vendor, VAT applies to the goods or services you supply, not to the crypto. Any later rise or fall in price before you dispose of the crypto produces a separate gain or loss, taxed on revenue or capital account depending on how you hold the crypto.

• Selling crypto for rand

• Trading one coin for another

• Paying for goods or services with crypto

• Earning crypto through mining, proof-of-stake validation, salary, or airdrops received for work

Capital gains tax on crypto in South Africa

SARS says the base cost of crypto held as a capital asset must be determined using either specific identification or FIFO; weighted average isn't allowed. Offset capital losses against capital gains in the same year, apply the annual exclusion, and carry any unused net loss forward.

Capital losses on crypto are offset against your capital gains for the year, including gains on other assets such as shares or property. A net capital loss is carried forward to future years, but it can't reduce salary, interest, or other ordinary income.

Two anti-avoidance rules can limit crypto losses. If you sell crypto at a capital loss and buy the same crypto back within 45 days before or after the sale, the loss may be disregarded and added to the cost of the replacement coins. Revenue-account crypto trading losses may also be ring-fenced under section 20A when its requirements are met. A ring-fenced loss generally cannot be set off against unrelated income and is instead carried forward against income from that trade.

Keep records that support each loss, such as exchange statements, wallet histories, and the rand values used, for at least five years from the date you submit the relevant return, so the carried-forward amount can be verified when you use it.

SARS's draft guide says the tax treatment depends on whether you worked for the airdrop. If you receive tokens in return for promotional tasks, services, or other work, their rand market value is income when you receive them. An airdrop you simply claim or receive without doing anything in return may be treated differently and may be capital in nature.

Hard forks are handled separately. Receiving a new coin from a hard fork isn't a disposal of the original coin, and if you hold the new coin as a capital asset, its base cost may be nil. When you later sell airdropped or forked tokens held as capital assets, calculate the gain or loss and apply the annual exclusion (R50,000 for the 2027 year of assessment).

SARS has not set one tax treatment for every DeFi transaction. Its 2026 draft guidance says DeFi arrangements can include lending, borrowing, and more complex transactions, so normal income tax and CGT principles must be applied to the specific arrangement.

Lending, liquid staking, liquidity pools, and yield farming therefore should not automatically be treated the same way. The tax result depends on the rights transferred, what you receive in return, and whether the relevant crypto is held on revenue or capital account.

Companies that mine, trade, or otherwise deal in crypto pay standard corporate income tax at 27%. Crypto capital gains are included in taxable income at an 80% inclusion rate, which yields an effective rate of 21.6%.

Although the supply of a crypto asset itself is exempt from VAT because it is classed as a financial service, a company may still have VAT obligations on other taxable services it provides, such as advisory or platform fees.

Normal rules for deducting operating expenses, depreciation on crypto mining hardware, and assessed-loss carry-forwards apply.

Crypto assets were declared financial products in October 2022, and crypto asset service providers subject to the relevant rules must comply with FSCA licensing and applicable anti-money-laundering requirements.

CARF took effect on March 1, 2026, requiring reporting crypto-asset service providers to begin collecting specified customer and transaction information. The first CARF return is due to SARS by May 31, 2027.

Failure to disclose crypto income or gains can attract understatement penalties ranging from 10% to 200% of the unpaid tax, depending on the taxpayer's conduct, plus interest. The highest rates apply to intentional tax evasion.

Deducting crypto losses in South Africa

The treatment of crypto-related costs depends on whether the asset is held on revenue or capital account. For revenue-account crypto, expenses must satisfy the normal deduction rules, including being incurred in the production of income and for purposes of trade.

For crypto held on capital account, qualifying costs are considered under the CGT base-cost rules. Keep invoices, exchange records, and transaction histories supporting any amount you claim.

Crypto as payment for goods and services

When you accept cryptocurrency for goods or services, value it in rand on the date you receive it. Depending on how the payment is made, it may be a direct barter or run through an intermediary that converts the crypto to rand, and the tax treatment follows the actual steps of the transaction.

If you are registered for VAT, you should issue a tax invoice in rand and charge VAT on the goods or services supplied, measured at the rand value of the crypto received. Any later gain or loss when you convert or spend the crypto is a separate tax event, taxed on revenue or capital account depending on how you hold the crypto. From April 1, 2026, compulsory VAT registration generally applies when taxable supplies exceed R2.3 million in a 12-month period.

1. Export all trades, earnings, and fees.

2. Record the rand value of each purchase, disposal, and receipt of crypto on the date it happened.

3. Apply specific identification or FIFO to find gains and losses on capital assets.

4. Apply the R50,000 annual CGT exclusion for individuals for the 2027 year of assessment. The annual exclusion was R40,000 for the 2026 year of assessment.

5. Include income from mining, proof-of-stake validation, trading, and payments in the correct section of your return.

• Keep annual net capital gains within the R50,000 exclusion where possible.

• Hold crypto as a genuine long-term investment and document that intention. There's no fixed holding period that guarantees capital treatment for crypto.

• Harvest losses before year-end to offset gains. Buying the same crypto back within 45 days before or after the sale may cause the loss to be disregarded.

• Qualifying donations to a section 18A-approved organization may be deductible when the applicable requirements are met and you receive the required section 18A receipt.

Income tax on crypto in South Africa

When you dispose of crypto held as a capital asset, SARS treats the difference between your sale proceeds and base cost as a capital gain or loss. Individuals have a R50,000 annual CGT exclusion for the 2027 year of assessment. After the annual exclusion and any applicable losses, 40% of the net capital gain is included in taxable income and taxed at your marginal rate, producing an effective top rate of 18%.

If you trade crypto as a business or with a profit-making intention, your profits are ordinary income taxed at up to 45%, with no exclusion or inclusion rate. Because SARS decides between the two treatments on the facts, keep complete transaction histories and evidence of why you bought each asset.

The first CARF reporting period runs from March 1, 2026, through February 28, 2027. Reporting crypto-asset service providers must submit their first return to SARS by May 31, 2027, and the first international exchange of CARF information is scheduled for September 2027.

Individual taxpayers do not file CARF returns themselves and must continue reporting taxable crypto activity through their normal tax returns.

• Buying crypto with rand does not by itself create a disposal.

• Transfers between wallets you own should be carefully documented; the tax outcome can depend on the facts of the transfer.

• A donation to a spouse is exempt from donations tax.

• Individuals have a R50,000 annual CGT exclusion for the 2027 year of assessment.

• Keep exchange records, wallet histories, invoices, and other documents supporting your crypto transactions for at least five years from the date you submit the relevant return.

• Keep records supporting the rand values used for taxable transactions.

• Keep enough transaction-level detail to support any specific-identification method used for capital-account crypto.

• Non-provisional individuals: return due October 23, 2026.

• Provisional taxpayers: return due January 22, 2027.

• Trusts: return due January 22, 2027.

• 2027 provisional tax payments: first payment by August 31, 2026; second payment by February 26, 2027.

• ITR12 for individuals.

• ITR14 for companies.

• IT3(c) is part of SARS's third-party reporting system rather than a taxpayer income tax return. SARS has specific IT3(c) guidance covering base-cost reporting for crypto assets.

1. Log in to eFiling.

2. Determine whether each crypto amount falls on revenue or capital account.

3. Report capital-account disposals in the applicable CGT section and revenue-account crypto activity in the appropriate income or trading section.

4. Keep supporting records and provide them if SARS requests them.

5. Submit and pay any balance owed.