The South African Revenue Authority releases draft guidelines for cryptocurrency taxation, with approximately 6 million users facing audits

The South African Revenue Service (SARS) released a draft of guidelines for cryptocurrency taxation on July 1, 2026, aiming to establish compliance rules for approximately 5.8 to 6 million South African cryptocurrency users. The public opinion period is until August 31, 2026. Cryptocurrency assets are classified as intangible assets, and tax obligations are triggered when disposing of assets. Operating or short-term trading profits are taxed at a rate of 18% to 45%, while long-term investment income is subject to capital gains tax at a rate of 18% to 36%. The exchange of cryptocurrency assets generates tax consequences based on market value. SARS has deployed the Crypto Revenue Augmentation Unit to track and audit digital wallets, and urged taxpayers to complete their declarations through a voluntary disclosure program. （Bitcoin.com News）