If you sold, swapped, or spent crypto during the tax year, SARS expects it on your return. Crypto assets are not treated as currency in South Africa. They are assets, and disposing of them can trigger a tax event. This guide covers the basics you need before filing.
Crypto is taxed as an asset, not a currency
SARS classifies crypto as a crypto asset, a digital representation of value. Normal income tax rules apply, and affected taxpayers must declare crypto-related gains or losses as part of taxable income. In practice:
- Disposals can be taxable events. Selling crypto for rand, swapping coins, or paying for goods and services generally counts as a disposal. SARS treats payments in crypto as barter transactions.
- Transfers between your own wallets are usually not disposals. Keep records showing that both accounts belong to you.
- Receiving crypto as income (mining rewards, staking rewards, or crypto received for services) generally counts as ordinary income at its rand value on receipt. A later disposal may create a further gain or loss.
- Airdrops are the exception to watch. An airdrop received for a task or service is income. A fortuitous airdrop received without doing work generally is not income. For tokens held on capital account, the full proceeds are then taxed as a capital gain on disposal. The SARS draft guide of 1 July 2026 sets out the distinction. See staking, mining and airdrops for more detail.
SARS does not issue crypto-specific tax rates. Whether a transaction is taxed as revenue or capital depends on the facts: intent, frequency, holding period, and the pattern of your activity.
How revenue and capital treatment affect your rate
Your tax rate depends on whether SARS treats a gain as revenue (ordinary income) or capital (a capital gain). Revenue forms part of ordinary taxable income. Capital gains follow the capital gains tax rules.
| Treatment | When it typically applies | How the gain is taxed |
|---|---|---|
| Revenue | Frequent trading, short holding periods, business-like or profit-seeking activity | The full gain forms part of taxable income at your marginal rate, up to 45% for individuals. |
| Capital | Long-term holding and investment intent | Deduct allowable capital losses and apply the annual exclusion to your total net capital gain. Include 40% of the remainder in taxable income at your marginal rate. |
SARS applies existing tax principles to the facts of each case. You may have both long-term investments on capital account and active trading on revenue account.
For someone in the top 45% bracket, the maximum effective capital gains rate is 18%. That is the 45% marginal rate multiplied by the 40% inclusion rate. Lower brackets pay less.
The annual exclusion rises from R40,000 to R50,000
For the 2026 year of assessment, the annual exclusion is R40,000 of your total net capital gain. That year runs from 1 March 2025 to 28 February 2026 and is the return filed in the current season. Budget 2026 raised the exclusion to R50,000 from the 2027 year of assessment, the first increase since 2017.
The exclusion applies once across all your capital gains, including crypto, shares, property, and other capital assets. It is not a separate allowance per asset class.
Capital losses on capital-account disposals can generally be set off against capital gains before the exclusion is applied. Losses that cannot be used in the current year may be carried forward, subject to the normal CGT rules.
Above the exclusion, 40% of the remaining net capital gain is included in your taxable income and taxed at your marginal rate.
Calculate cost basis with FIFO and complete records
To calculate a gain or loss you need to know what you paid for the units you disposed of. When you have bought the same asset many times at different prices, you need a consistent way to match disposals to acquisitions.
SARS treats units of the same crypto asset held on capital account as identical assets under the Eighth Schedule. Use either specific identification or first-in-first-out, known as FIFO, to determine base cost. Specific identification requires records of the exact units sold. The weighted-average method available for listed shares on recognised exchanges is not available for crypto.
Coinfig uses the FIFO bundle method. It pools acquisitions of the same asset and treats the oldest units as disposed of first.
To calculate cost basis across several years of history:
- Include transaction history from every exchange and wallet, including closed accounts.
- Match transfers so moves between your wallets are not mistaken for disposals or missing acquisitions.
- Account for trading and network fees that affect base cost and proceeds.
- Record rand values at the time of each transaction, including crypto-to-crypto swaps.
Gaps in any of these produce wrong numbers, usually overstated gains, because missing acquisitions mean missing base cost.
What to have ready before you file
- Transaction schedules for each exchange and wallet covering the tax year, from 1 March to the end of February.
- Proceeds, base cost, and net gain or loss, split into revenue and capital where relevant.
- Records supporting transfers between your own accounts.
- Rand values on receipt for staking, mining, and airdrops earned through tasks or services.
From 1 March 2026, South Africa's Crypto-Asset Reporting Framework, or CARF, also requires in-scope crypto platforms to report customer data to SARS. CARF does not change how crypto is taxed. It helps SARS compare platform reports with your declaration. See how CARF reporting actually works for the timetable.
Coinfig produces these schedules from your exchange and wallet history using the FIFO bundle method. Its completeness checks flag potential gaps for you to review before relying on the calculations.
If you trade on a specific exchange, see our guides for getting a Luno tax report, a VALR tax report, or Kraken tax reporting for the exact export and API steps. For the full picture, including deadlines, CARF, and what to do about past years, read the complete guide to crypto tax in South Africa.
This article is general information, not tax advice. Crypto tax outcomes depend on your specific circumstances. For complex situations, consult a qualified tax practitioner.