The country’s Revenue Service is considering altering its tax return forms to include cryptocurrencies.
The South African government has created a crypto assets regulatory working group to investigate the potential of cryptocurrency and blockchain, Business Live reported yesterday.
Per the report, the group includes representatives from the Financial Intelligence Centre, Financial Sector Conduct Authority, and Treasury, as well as the Reserve Bank, and the SA Revenue Service.
The group aims to enable the government to officially (and appropriately) respond to cryptocurrencies, and develop a “unified intergovernmental regulatory framework,” finance minister Tito Mboweni wrote in response to a question raised by a local MP.
“It is anticipated that, following broad industry comment and participation, the crypto assets regulatory working group will be ready to release a final research paper on the subject during the course of 2019,” he said.
Back in May, we reported that around 47% of citizens in South Africa plan to invest in cryptocurrency – a figure certainly large enough to prompt the establishment of a unified regulatory strategy for dealing with such investments.
As such, Mboweni said that the SA Revenue Service is currently considering amending its tax return forms to include cryptocurrencies in 2019, as the current forms make it difficult for the service to accurately trace declarations specifically concerning profits made on crypto. Crypto would also be subject to the same tax regulations as other currencies.
“Taxpayers who have made some form of declarations regarding cryptocurrency trades have captured such trade as a form of ‘other trade income’ or ‘other trade loss’, and have made reference to a description of digital/crypto currency trading (e.g. Bitcoin Cash, Litecoin (LTC), Ethereum (ETH), Zcash (ZEC) to name a few).” Mboweni added.
Source: Business Live