In an update shared over the country’s news agency, the South African Revenue Service (SARS) has called taxpayers to declare their digital currencies and other crypto assets through its Voluntary Disclosure Programme (VDP).
Given the increasing popularity of digital assets like Bitcoin and Ripple’s XRP among South Africans, the agency’s latest move isn’t surprising. Also, many have expected the tax policy following the Financial Sector Conduct Authority’s decision to declare crypto as a financial instrument.
Crypto Assets And Transactions Growing In Scale
Like other countries, South Africa is experiencing massive growth in crypto-related transactions. One media poll suggests that around 40% of the country’s population has used Ripple and other digital currencies for online payments. According to SARS’ internal data, around 5.8 million locals hold cryptos and engage in a considerable chunk of Bitcoin transactions.
Media Release: SARS Warns About Crypto Asset Compliance
SARS has noted the phenomenal growth of the use of various digital currencies by many South Africans. Prominent amongst these is the prevalence of crypto assets… https://t.co/EXlWYlYrVA pic.twitter.com/fDbggUzSA1
— SA Revenue Service (@sarstax) October 9, 2024
SARS Sees Risks Ahead, Calls For Voluntary Disclosure Of Crypto Assets
Still, the local acceptance and growing popularity have some hazards. The national tax department alerts of intentional tax avoidance. Many residents reportedly fail to disclose their crypto assets when submitting tax forms.
Go to Source to See Full Article
Author: Christian Encila
