<p>By SARS and CNBC Africa</p>
<p>South Africans coining it from bitcoin or other cryptocurrencies will now have to pay tax the South African Revenue Service (SARS) revealed on Friday.</p>
<p>In an emailed statement SARS said normal income tax rules will apply to cryptocurrencies and it expects affected taxpayers to declare cryptocurrency gains or losses as part of their taxable income.</p>
<p>[bc_video video_id=&#8221;5765555908001&#8243; account_id=&#8221;1571595826001&#8243; player_id=&#8221;962b8774-5f97-47fd-81a6-837da7aecf49&#8243; embed=&#8221;in-page&#8221; padding_top=&#8221;56%&#8221; autoplay=&#8221;&#8221; min_width=&#8221;0px&#8221; max_width=&#8221;640px&#8221; width=&#8221;100%&#8221; height=&#8221;100%&#8221;]</p>
<p>The onus is on taxpayers to declare all cryptocurrency-related taxable income in the tax year in which it is received or accrued.  Failure to do so could result in interest and penalties.</p>
<p>Taxpayers who are uncertain about specific transactions involving cryptocurrencies may seek guidance from SARS through channels such as Binding Private Rulings (depending on the nature of the transaction).</p>
<p>Want to learn more about cryptocurrencies? Watch <a href="http://cnbc.africa/category/tv-shows/crypto-trader/">#CryptoTrader</a></p>
<p>Increased attentiveness and speculation regarding the future of cryptocurrencies has prompted calls for SARS to provide direction as to how cryptocurrencies should be treated for tax purposes. However, as indicated in this media statement, there is an existing tax framework that can guide SARS and affected taxpayers on the tax implications of cryptocurrencies, making a separate Interpretation Note unnecessary for now.</p>
<p>Cryptocurrency (typified by Bitcoin) is an internet-based digital currency that exists almost wholly in the virtual realm. A growing number of proponents support its use as an alternative currency that can pay for goods and services much like conventional currencies.</p>
<p>In South Africa, the word “currency” is not defined in the Income Tax Act (the Act).  Cryptocurrencies are neither official South African tender nor widely used and accepted in South Africa as a medium of payment or exchange. As such, cryptocurrencies are not regarded by SARS as a currency for income tax purposes or Capital Gains Tax (CGT). Instead, cryptocurrencies are regarded by SARS as assets of an intangible nature.</p>
<p>Whilst not constituting cash, cryptocurrencies can be valued to ascertain an amount received or accrued as envisaged in the definition of “gross income” in the Act.</p>
<p>Following normal income tax rules, income received or accrued from cryptocurrency transactions can be taxed on revenue account under “gross income”. Alternatively such gains may be regarded as capital in nature, as spelt out in the Eighth Schedule to the Act for taxation under the CGT paradigm.</p>
<p>Determination of whether an accrual or receipt is revenue or capital in nature is tested under existing jurisprudence (of which there is no shortage).</p>
<p>Taxpayers are also entitled to claim expenses associated with cryptocurrency accruals or receipts, provided such expenditure is incurred in the production of the taxpayer’s income and for purposes of trade.</p>
<p>Base cost adjustments can also be made if falling within the CGT paradigm.</p>
<p>Gains or losses in relation to cryptocurrencies can broadly be categorised with reference to three types of scenarios, each of which potentially gives rise to distinct tax consequences:</p>
<ul>
<li>A cryptocurrency can be acquired through so called “mining”. Mining is conducted by the verification of transactions in a computer-generated public ledger, achieved through the solving of complex computer algorithms. By verifying these transactions the “miner” is rewarded with ownership of new coins which become part of the networked ledger.</li>
</ul>
<p>This gives rise to an immediate accrual or receipt on successful mining of the cryptocurrency. This means that until the newly acquired cryptocurrency is sold or exchanged for cash, it is held as trading stock which can subsequently be realized  through either a normal cash transaction (as described in (ii) or a barter transaction as described in (iii) below.</p>
<ul>
<li>Investors can exchange local currency for a cryptocurrency (or <em>vice versa</em>) by using cryptocurrency exchanges, which are essentially markets for cryptocurrencies, or through private transactions.</li>
<li>Goods or services can be exchanged for cryptocurrencies. This transaction is regarded as a barter transaction. Therefore the normal barter transaction rules apply.</li>
</ul>
<p><strong>Value-Added Tax (VAT)</strong></p>
<p>The 2018 annual budget review indicates that the VAT treatment of cryptocurrencies will be reviewed. Pending policy clarity in this regard, SARS will not require VAT registration as a vendor for purposes of the supply of cryptocurrencies.</p>


Invested in #bitcoin or cryptocurrencies? This is how SARS plans to tax you…

<p><iframe loading="lazy" src="https://www.youtube.com/embed/5R5VVBtECzc" width="640" height="360" frameborder="0" allowfullscreen=""></iframe></p>
<p>Solar power could transform small communities around the world and The Sun Exchange wants to be at the forefront of providing the source of energy to the most remote communities using various funding models. Joining CNBC Africa to talk more about this is Abraham Cambridge, Founder, The Sun Exchange.</p>


Funding solar installations in small communities with bitcoin

<p><em>Lukman Otunuga, Research Analyst</em> | <em>FXTM</em></p>
<p>Global equity bears marched into Thursday’s trading session with a mission to sow chaos across stock markets, as fears mount over a potential global trade war.</p>
<p><img loading="lazy" decoding="async" class="wp-image-9513 size-full" src="http://cnbc.africa/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research.jpg" alt="JSE’s top performing stocks in March 2015" width="1365" height="1024" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research.jpg 1365w, https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research-1024x768.jpg 1024w, https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research-160x120.jpg 160w" sizes="auto, (max-width: 1365px) 100vw, 1365px" /></p>
<p>&nbsp;</p>
<p>Asian stocks were mostly depressed during early trading thanks to risk aversion, and this caution could trickle down into the European markets. With Wall Street pummelled by rising fears of U.S protectionism on Wednesday, U.S stocks are at risk of extending losses this afternoon if the negative sentiment prevails. Risk aversion could become a dominant market theme moving forward, as concerns intensify over escalating trade tensions negatively impacting global growth.</p>
<p><strong>Sterling supported by Dollar weakness…</strong></p>
<p>The story around Sterling’s appreciation this week continues to revolve around a weakening U.S Dollar.</p>
<p>With investor appetite for the British Pound limited amid Brexit uncertainty, bulls are finding it increasingly difficult to keep prices buoyed. While Dollar weakness has the ability to support the GBPUSD in the near term, price action suggests some fatigue is already starting to take place, with bears lingering in the vicinity. Taking a look at the technical picture, Sterling’s appreciation has been halted on two occasions this week by the stubborn gatekeeper known as 1.4000.  Sustained weakness below this resistance level could invite a decline back towards 1.3850. Alternatively, a breakout above 1.4000 could trigger an incline towards 1.4050 and 1.4120, respectively.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-301850 size-full" src="http://cnbc.africa/wp-content/uploads/2018/03/Graph-1_FXTM.png" alt="" width="443" height="362" /></p>
<p><strong>Commodity spotlight – WTI Oil </strong></p>
<p>WTI Crude held steady on Thursday morning, after the Energy Information Administration (EIA) reported on Wednesday that gasoline supply dropped thanks to demand jumping to a seven-month high.</p>
<p>While recent reports of rising demand could offer the oil price some support in the short term, soaring production from U.S Shale is likely to present many headwinds down the road. With OPEC warning that Trump’s trade policies could negatively impact oil demand, the outlook for WTI Crude remains tilted to the downside. The unsavoury combination of surging U.S Shale oil production and the threat of demand softening amid a potential trade war could spell trouble for OPEC.</p>
<p>From a technical standpoint, WTI Crude remains under pressure on the daily charts below $62.00. Repeated weakness below the $62.00 resistance level could open a path back towards $60.00.</p>
<p><strong>Bitcoin sinks below $8,000 </strong></p>
<p>Bitcoin simply failed to shield itself against an onslaught of negativity during Wednesday’s trading session, with prices eventually sinking below $8,000 on Thursday morning.</p>
<p>In a move that eroded investor appetite towards Bitcoin, Google announced that it will ban online advertisements promoting cryptocurrencies. The downside was fuelled by the International Monetary Fund who called for a global crackdown on cryptocurrencies. With members of Congress delivering the knockout blow on Wednesday amid scepticism around digital currency, the outlook for Bitcoin is looking increasingly gloomy.</p>
<p>Focusing purely on the technical picture, Bitcoin is bearish on the daily charts with $10,000 acting a solid psychological resistance level. Sustained weakness below $8,000 could open a path back towards $7,000 and $6,000, respectively.</p>


Investors on edge as fears of trade war mount

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5738516037001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Over 3.5 billion people globally are underserved when it comes to financial services. There, presents an opportunity for new financial forms hitting emerging markets. Tricia Martinez, Founder &#038; CEO of Wala joins CNBC Africa for more.</p>


Bitcoin is a victim of its own success – Wala CEO

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5737025175001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Blockchain technology continues to be incorporated more deliberately into our day to day solutions. But with it, comes concerns about trust in institutions, safety across decentralized networks and the trade-offs within the value chain.</p>


How technology behind bitcoin will change your life

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe loading="lazy" style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5728084536001" width="300" height="150" frameborder="0" allowfullscreen="allowfullscreen"></iframe></div>
</div>
<p>With new digital coins hitting the market, regulation on anti-money laundering, anti-terrorist financing laws, and anti-financial crimes both in the United States and broad remains a concern. Brian Darling, President and founder of Liberty Government Affairs joins CNBC Africa to touch on AML Bitcoin, created with compliance in mind, and to discuss current trends and issues in the industry.</p>


Here is why governments are pushing for regulation of Bitcoin – Expert

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5724046438001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>SARS could soon start taxing bitcoin revenue. Joining us to talk more about the guidelines and the declaring process is Dr Randall Carolsin, Group Executive for Tax Customs at SARS.</p>


Bitcoin tax plan already in place, here’s what should know

<p><iframe loading="lazy" src="https://www.youtube.com/embed/VUIys_pFNcI" width="640" height="360" frameborder="0" allowfullscreen=""></iframe></p>
<p>All the coverage from the North American Bitcoin Conference including interviews with Max Keiser, WanChain; Sean Walsh,Tzero, CG BLOCKCHAIN.</p>


Cryptotrader goes to the biggest conference in the world

<p>Ghana’s central bank kept its benchmark interest rate at 20 percent on Monday, citing the need to keep inflation within its medium-term target of 8 percent plus or minus two percentage points, governor Ernest Addison told a news conference in the capital Accra.</p>
<div id="attachment_91126" style="width: 810px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-91126" class="wp-image-91126 size-full" src="http://cnbc.africa/wp-content/uploads/2017/03/shutterstock_270259862.jpg" alt="" width="800" height="600" /><p id="caption-attachment-91126" class="wp-caption-text">Photo: Shutterstock.</p></div>
<p>The major commodity exporter is in its final year of a $918 million credit deal with the International Monetary Fund to narrow deficit, debt and inflation. The Central bank has eased rates by 550 basis points in the past year to foster growth.</p>
<div class="DPSlot_container_2dHIN StandardArticleBody_dp-slot-inline_eUPBt" data-ad-type="other"></div>
<p>Addison said the central bank does not recognize bitcoin as a tradeable medium of exchange. “It is not legal tender and it is not regulated”.</p>
<p>But the bank will not clamp down on users, he said, adding that the bank would soon announce a policy on digital currencies.</p>
<p>Ghana earned $5.78 billion from gold exports last year, up from $4.91 billion in 2016 while cocoa revenue totalled $2.71 billion compared to $2.57 billion in 2016. Oil receipts amounted to $3 billion from $1.34 billion.</p>
<p>Net international reserves stood at $4.52 billion, or 2.5 months of imports cover, compared to two months cover of $3.4 billion at the end of 2016. Total public debt stood at $31.4 billion, representing 68.7 percent of GDP as of November 2017 , compared to 73.3 percent at the end of 2016.</p>
<div class="Attribution_attribution_o4ojT">
<p class="Attribution_content_27_rw">Reporting by Kwasi Kpodo; Editing by Tim Cocks and Toby Chopra</p>
</div>


Ghana central bank keeps policy rate unchanged at 20%

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5716512970001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Bitcoin returns as one of the focal points of conversation at the World Economic Forum in Davos. According to the Global Blockchain Business Council, a baseline to evaluate future policy actions and a framework to assess progress is necessary.</p>


Davos’ elites to talk cryptocurrencies

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5713440518001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Red &#038; Yellow has just become South Africa’s first business school to accept bitcoin payments for all degrees, advanced diplomas, certificates and online courses.</p>


SA’s first business school to accept bitcoin for degrees

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5712596648001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>According to Isaac Muthui, founder and CEO of the crypto currency Nurucoin, the advantage that his crypto-currency has over more popular and established ones like bitcoin is that it is made by Africans for Africa. He joins CNBC Africa for more.</p>


Using crypto-currencies to boost intra-Africa trade

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5712614041001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Bitcoin dived below $12,000 today as it appears the regulatory noose is tightening.</p>


Crackdown fear fuels bitcoin volatility

<p><iframe loading="lazy" src="https://www.youtube.com/embed/Ozk_Fj0sFes" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>The biggest Crypto show that has ever been hosted in the world. All the top names in Crypto talk about their predictions for 2018 including Brian Kelly , Host of Fast Money; Vinny Lingham, Founder of Civic; Ricardo Spagni, Monero; Spencer Bogart, Blockchain Capital; Luke Martin, Trader, Ronnie Moas and many others. We also look at an interesting new token that has disrupted the Porn industry</p>


CNBC Cryptotrader EP1, 2018: The top names in Crypto talk about their predictions for 2018

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5707843378001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>South Korea has got the hearts of crypto-fans fans skipping a beat. Over $100 billion has been wiped off the global cryptocurrency market after talks the country is planning to ban trading on its exchanges.</p>


South Korea doesn’t plan to ban bitcoin, but regulate it – sources

<p><iframe loading="lazy" src="https://www.youtube.com/embed/HEuCJjClr60" width="640" height="360" frameborder="0" allowfullscreen=""></iframe></p>
<p>With bitcoin&#8217;s meteoric rise of more than 2000 per cent year on year from 786.93 dollars on the 12th of December to 17,920 dollars a little over an hour ago, crypto currencies and the technology behind them &#8211; Blockchain have come into the spotlight. Adeoye Ojo, co-founder of suregifts.com joins CNBC Africa to demystify the Blockchain technology.</p>


Demystifying Blockchain technology

<p><iframe loading="lazy" src="https://www.youtube.com/embed/U5hiQEmAgAA" width="640" height="360" frameborder="0" allowfullscreen=""></iframe></p>
<p>Bitcoin ready for the CME futures, Crypto market hits an all-time high of over $500 billion. Crypto Kitties cripples ETH Bitcoin scales with lightning Gifto ICO Bankex ICO.</p>


Crypto

Invested in #bitcoin or cryptocurrencies? This is how SARS plans to tax you…

Funding solar installations in small communities with bitcoin

Investors on edge as fears of trade war mount

Bitcoin is a victim of its own success – Wala CEO

How technology behind bitcoin will change your life

Here is why governments are pushing for regulation of Bitcoin – Expert

Bitcoin tax plan already in place, here’s what should know

Cryptotrader goes to the biggest conference in the world

Ghana central bank keeps policy rate unchanged at 20%

Davos’ elites to talk cryptocurrencies

SA’s first business school to accept bitcoin for degrees

Using crypto-currencies to boost intra-Africa trade

Crackdown fear fuels bitcoin volatility

CNBC Cryptotrader EP1, 2018: The top names in Crypto talk about their predictions for 2018

South Korea doesn’t plan to ban bitcoin, but regulate it – sources

Demystifying Blockchain technology

Crytpo market hits all time high of $500bn – is there a correction ahead?

News Tips

Advertise With Us

Crypto

Invested in #bitcoin or cryptocurrencies? This is how SARS plans to tax you…

Funding solar installations in small communities with bitcoin

Investors on edge as fears of trade war mount

Bitcoin is a victim of its own success – Wala CEO

How technology behind bitcoin will change your life

Here is why governments are pushing for regulation of Bitcoin – Expert

Bitcoin tax plan already in place, here’s what should know

Cryptotrader goes to the biggest conference in the world

Ghana central bank keeps policy rate unchanged at 20%

Davos’ elites to talk cryptocurrencies

SA’s first business school to accept bitcoin for degrees

Using crypto-currencies to boost intra-Africa trade

Crackdown fear fuels bitcoin volatility

CNBC Cryptotrader EP1, 2018: The top names in Crypto talk about their predictions for 2018

South Korea doesn’t plan to ban bitcoin, but regulate it – sources

Demystifying Blockchain technology

Crytpo market hits all time high of $500bn – is there a correction ahead?

News Tips

Advertise With Us

Newsletters