South Africa will Track and Tax the Bitcoin Trading
December 18, 2017 12:51 pm
It is said that there is nothing in the world except death and taxes. And at least in the second, we can be sure that this change without power is left without fighting. The latest country is now known to be looking for taxing bitcoin trading is South Africa.
Bitcoin use has been growing constantly in South Africa, mostly for trading, it is becoming more popular, people now can their driving tickets with the currency as well. This has made the South African Revenue Service (Sars) for expanding the ways to ensure it gets its cut from all the action. The agency is contacting the leading international technology firms to find a particular method to track the cryptocurrency trading in the country for tax purposes.
Dr. Randall Carolissen, Sars group executive for research, said:
“As you can imagine it is very difficult, the blockchain technology. Without revealing too much – we are talking to some of the top technology companies in the world that are doing similar work for Canada and the UK and we are hoping to get that technology.”
He included that the agency is also solidifying its connection with the South African Reserve Bank (Sarb), the country’s central bank, to see how they can better match cross-border outflows and inflows of money to try and make sure that the people have less “place to hide things”.
Dr. Carolissen explained:
“At the moment, we are treating cryptocurrency in the same way as capital realization – so in other words, it is like a Krugerrand. If you buy it at a particular point and you then sell it, you will be faced with a capital appreciation and then we will treat it as Capital Gains Tax.”
The South African tax man has revealed that SARS is working with similar agencies from different countries in implementing new policies to track the problem with the Organization for Economic Cooperation and Development (OECD). This collaboration is said to provide detailed recommendations for handling cryptocurrencies.
“We were part of the OECD working groups and that has certainly been incorporated into our policy environment. So we are on top of it. In fact, South Africa is cited as one of the leading implementers of this cryptocurrency environment.”