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South Africa will pay taxes on Bitcoin transactions and countries will start a frenzy of cryptocurrency levy

Nothing in the world is said to be definite except death and tax. At least we can be sure that without the reform, the people in power will not make any changes to the latter. There is another country that is going to tax Bitcoin transactions, which is South Africa.

The use of Bitcoin in South Africa is rapidly expanding and in most cases Bitcoin is being traded. This cryptocurrency is so popular that people can even use it to pay for tickets. This has also led Sars to start taking steps to ensure that all related activities are taxed. It is reported that the agency is contacting top international technology companies to find effective ways to track cryptocurrency transactions for tax purposes.

Dr Randall Carolissen, Sars Research Director, said:

One can imagine this is hard - blockchain technology. We can not say much at the moment, but we are currently working with some of the world's best technology companies to understand the technology, and these companies are doing similar work for the governments of Canada and the United Kingdom.
He added that the IRD is also stepping up its ties with South African Reserve Bank (Sarb), the country's central bank, with the aim of finding more effective ways to match the inflows and outflows of cross-border funds in the hope of ensuring that people do not conceal the source of funding .

global cooperation

Carolissen explains:

For now, we see cryptocurrency as a way of realizing capitalization - hence, that is, it's like Kruger. If you buy and sell at a specific time, there will be a capital appreciation, then we will levy a capital gains tax.
The Inland Revenue official also mentioned that Sars is currently working with the OECD to work with the tax authorities in different countries to deploy new policies to address this issue. This cooperation will provide them with detailed encrypted currency coping styles and suggestions.

We are a part of the OECD working group, which is currently integrated into our policy environment. So we are in the lead. In fact, South Africa is one of the key deployments for this type of cryptocurrency environment.

Recently, we have seen that the IRS, the Korea Revenue Agency, and the Indian Income Tax Department have all started to take action on bitcoin. In addition to obliging local exchanges and the public to report all transactions, it is unclear how regulators in each country track trades.