How you are taxed on cryptocurrencies
For example, if you bought a Bitcoin five years ago, when it was R11 000 and sold it in January this year for R550 000, your capital gain would have been R539 000. You will need to add R199 600 to your taxable annual income (R539 000 – R40 000 exclusion x 40% = R199 600). If your marginal rate is 31%, you will pay Sars R61 876 (31% of R199 600, or 11.5% of the total gain) on your Bitcoin gain.
◆ Revenue as a trader. If you are taxed on revenue derived from trading, then your entire profit, less any qualifying expenses you incurred earning that profit, such as your fibre network costs, must be added to your annual taxable income. On a profit of R539 000 after expenses, if you are already in the highest marginal tax bracket, you will pay R242 550 (45%).
Lifestyle
en-za
2021-06-12T07:00:00.0000000Z
2021-06-12T07:00:00.0000000Z
https://thestar.pressreader.com/article/282089164714103
African News Agency