Crypto enthusiasts in South Africa are now required to declare their crypto assets in line with the new South African Revenue Service (SARS) compliance program.
The move by SARS follows the simple metric of South Africa becoming among the top 5 african countries by Crypto adoption. Statistics peg the figure of crypto holders in the country to 5.8 million South Africans roughly 10% of the total population.
In Addition to That, South Africa boasts of one of the highest uptakes of Bitcoin, the flagship crypto asset in the world.
SARS New Compliance Program
South African Revenue Service has raised an alarm that most South Africans are not declaring their crypto assets in their tax returns in blatant violation of the Tax compliance program which mandates all citizens to declare all forms of income and assets.
In Response to this SARS is collaborating with Financial Sector Conduct Authority (FSCA) and local crypto exchanges to obtain information on crypto assets owned by South Africans.
This collaboration is part of a broader initiative to monitor crypto entities in the country and ensure Tax compliance.
SARS is going a step further to tackle Non Compliance by issuing Query letters to Taxpayers with Crypto Assets. SARS is complementing its battle against Non-Compliance with sophisticated technology like artificial intelligence and machine learning, which SARS says it is using to enhance its audit capabilities.
SARS’s efforts to tackle Non-compliance in the country’s crypto sector is an example of a broader effort SARS’ to regulate and control the wild world of cryptocurrency.
Crypto Adoption in South Africa
In a recent research article by Crypto Clock, South Africa was named as one of the Top 5 African countries by Crypto adoption. Many South African citizens and businesses have turned to digital currencies as a payment method, investment tool, or hedge against inflation.
The heightened attention the crypto sector is getting from South African authorities in the country testifies to its growing significance and speaks to a future without underhand dealings and a lack of transparency in the sector.