Crypto Assets and Tax Preparation

For the average person who invests in Crypto Assets, it is not as “secret or private” as you are led to believe. Normal income tax rules apply to crypto-assets, and you need to declare crypto assets’ gains or losses in your taxable income.

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What people don’t realise is that SARS enforces late penalties and if you don’t declare on time, all your profits could be paid to tax or even worse you get a criminal record! Bullivant Accounting and Tax Services advice is to declare it before SARS finds it! 

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Before you sign up as a “crypto trader” or experiment with buying some cryptocurrency you should familiarise yourself with the tax implications.

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Keeping track of the purchase price and exchange on the day your crypto asset is purchased is important to determine the best tax treatment.

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Bullivant Accounting and Tax Services can help you unpack your crypto assets and come clean with SARS. If necessary, apply for the SARS Voluntary Disclosure Process (VDP) if you have understated your taxable income in prior tax returns and wish to not have criminal prosecution for a tax offence.

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Don’t let your crypto-asset gains work for the tax man!