South Africa Releases Draft Crypto Tax Guide and Opens Public Comment Until August 31, 2026

South Africa’s Revenue Service (SARS) released a draft crypto-asset tax guide on July 1, 2026, proposing compliance rules for about 5.8 million to 6.0 million crypto users in the country and opening a public comment period through August 31, 2026. According to Odaily, the updated framework classifies crypto assets as intangible assets rather than foreign currency or traditional money. Under the draft, taxpayers would not owe tax on unrealized gains or losses while merely holding crypto assets. Tax obligations would be triggered when the assets are disposed of. If an individual’s crypto activity is deemed similar to business operations or short-term intraday trading, profits would be treated as gross income and taxed at marginal rates ranging from 18% to 45%. If crypto assets are held as long-term investments, disposal gains would be subject to capital gains tax, with an effective personal tax rate of 18% to 36%. The draft also treats exchanges between crypto assets as barter transactions, with tax consequences arising at the time of exchange based on local market value. SARS said it has deployed a Crypto Revenue Augmentation Unit to track and audit digital wallets. It also urged taxpayers who previously did not disclose crypto income to use a voluntary disclosure program to file, in order to avoid administrative penalties tied to stronger enforcement after an August deadline.