The South African Revenue Service (SARS) could bring in stricter taxes for the country’s cryptoasset holders in the near future, potentially hampering the development of an industry that has emerged as Africa’s biggest, analysts claim.
Wiehann Olivier, a partner in the auditing division of international accounting and tax consultancy Mazars’ South African branch, said, in a statement emailed to Our, that the country’s tax authority is set to introduce a number of measures that would see crypto traders in the nation taxed on their earnings and token holdings.
Olivier said he believed the introduction of stricter tax rules for South African crypto owners was a virtual certainty within the next few years.
“[Cryptoassets] were created to allow for anonymous, frictionless and trusted peer-to-peer transactions to be conducted over the internet (including cross-border transactions). That means that they can be used as a means of tax avoidance in a number of different ways.”
Some traders might opt to use “smoke and mirror” tactics in a bid to avoid crypto taxes.
The Mazars partner added,