South Africa’s SARS proposes crypto tax rules for up to 6 million users

South Africa’s SARS, the South African Revenue Service, has issued a draft crypto-asset tax guide that could shape compliance for roughly 5.8 million to 6 million users while signaling closer scrutiny of digital-asset activity. Published on July 1, 2026, the draft treats crypto assets as intangible assets rather than currency, foreign exchange items or traditional money, meaning existing tax rules apply and tax is generally triggered on disposal rather than while assets are simply being held. Profits from business-like trading or frequent buying and selling may be taxed as ordinary income at marginal rates of 18% to 45%, while longer-term investment gains may fall under capital gains tax, with the maximum effective rate for individuals at about 18%. The guidance says mining, staking, token swaps and using crypto to pay for goods and services can all create taxable disposal events, and it makes clear that South African tax residents are assessed on worldwide income, limiting the scope for offshore accounts or foreign-held wallets to avoid reporting. SARS is accepting public comments until Aug. 31, 2026, and is requiring detailed records including transaction dates, rand values and the nature of each disposal event as it strengthens data collection and audit capabilities for digital wallets and crypto transactions.