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The country's revenue service is considering the possibility of modifying the tax return forms to include cryptocurrencies.
The South African government has created a regulatory work group on crypto assets to investigate the potential of cryptocurrency and blockchain, Business Live reported yesterday.
According to the report, the group includes representatives of the Financial Intelligence Center, the Financial Sector Conduct Authority and the Treasury, as well as the Reserve Bank and the Inland Revenue Agency SA.
The group aims to allow the government to officially (and appropriately) respond to cryptocurrencies and develop a "unified intergovernmental regulatory framework", wrote Finance Minister Tito Mboweni in response to a question raised by a local MP.
"It is expected that, following the commentary and participation of the sector, the cryptographic resources regulatory working group will be ready to publish a final research paper on the subject in the course of 2019," he said.
In May, we reported that about 47% of South African citizens plan to invest in cryptocurrency – a figure certainly large enough to require the establishment of a unified regulatory strategy to manage these investments.
As such, Mboweni stated that the Inland Revenue Agency SA is currently considering the possibility of modifying its forms of income tax return to include cryptocurrencies in 2019, as current forms make it difficult for the service to accurately track statements specifically regarding profits made on crypts. Crypto would also be subject to the same tax regulations as other currencies.
"Taxpayers who made some kind of declaration regarding the cryptocurrency negotiations have captured this trade as a form of" other commercial revenue "or" other commercial loss ", and have referred to a description of the digital currency trade / crypto (eg Bitcoin Cash, Litecoin (LTC), Ethereum (ETH), Zcash (ZEC) to name a few). "adds Mboweni.
Source: Business Live
Image: Bigstock
