South Africa Compliance Report

Regulatory Overview

Regulatory Status

Dedicated crypto/VA legislation, licensing regime, active enforcement

Key Regulator(s)

Financial Sector Conduct Authority, Prudential Authority

Risk Level

medium

Primary Legislation

The Financial Intelligence Centre Act 38 of 2001 carries South Africa's anti-mon, The Financial Advisory and Intermediary Services Act 37 of 2002 regulates the re, The Conduct of Financial Institutions Bill, published by National Treasury for p, The South African Revenue Service taxes crypto assets under the Income Tax Act 5, The Exchange Control Regulations of 1961 made under the Currency and Exchanges A

Travel Rule

Adopted — Threshold: Implemented

Tax Reporting

SARS characterises crypto assets as assets of an intangible nature, not as currency and not as a financial instrument, and taxes gains either as revenue in gross income at marginal rates of up to 45 per cent or as capital gains under the Eighth Schedule to the Income Tax Act 58 of 1962, while the SARB Financial Surveillance Department separately applies exchange control to cross-border crypto asset activity.. The capital gains tax annual exclusion for individuals and special trusts is R50 000 of capital gain or capital loss per year of assessment, and SARS applies that figure to the 2022 through 2027 years of assessment; the R40 000 exclusion is a superseded earlier-year amount that no longer applies to any current year of assessment.. Forty per cent of a natural person's net capital gain, after the R50 000 annual exclusion, is included in taxable income, while the inclusion rate is 80 per cent for companies, close corporations and other trusts and 50 per cent for micro businesses.. The maximum effective capital gains tax rate for individuals and special trusts is 18 per cent, being the 40 per cent inclusion rate applied to the 45 per cent top marginal rate, against 21.6 per cent for companies and 36 per cent for other trusts.. Mining, staking, or receiving crypto as remuneration

Key Facts

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