Bitcoin and Tax in South Africa| AMA with Wiehan Olivier and Tertius Troost from Mazars

Gareth Grobler discusses the implications of buying, trading, and selling Bitcoin and other cryptocurrencies in South Africa with local experts Wiehann Olivier and Tertius Troost. Wiehann is a partner and Tertius is an international tax manager at well-known audit, tax, and advisory firm Mazars.

Some of the questions we explore are:

* Why does SARS believe they have the right to decide how much my bitcoin is worth in order to work out TAX liability? How do they propose to do this?
* Why do governments believe they have a right to a share of gains made trading bitcoin when they have no influence, no jurisdiction, and no input or facilitation to the bitcoin network?
* Who decides what a taxable event is in terms of bitcoin changing hands? Is there any case law in terms of tax liability for crypto in South Africa?
* If I have bitcoin that I have earned, and it has never touched any exchange, it is sitting in my own wallet, should I declare it, and if so why? If it is declared, do I need to pay tax on it since it is bitcoin and not Rand?
*If I only earn bitcoin online (no fiat currency), and do not convert that bitcoin to Rand, instead I spend it using a USD based bitcoin debit card. Do I need to declare that, and if I do, what is the procedure since there is never a Rand value for the bitcoin, and it has never entered any bank account?
* If I charge someone 0.1 BTC for a service, and do not convert the BTC to Rand….and keep that for 5 years and have not converted it yet….should I declare that, and if so, What would the procedure be when declaring that considering its income but not converted to ZAR.
* Similarly, if I have mined bitcoin, (did not buy it anywhere), and that is still sitting in a wallet untouched for 5 years. What would be the best way to declare that since it was generated, and has not been traded for any fiat value yet.
* If I want to financially emigrate, I understand all SA assets need to be sold and declared….so what happens with bitcoin, since it resides in cyberspace, and not ‘in’ SA?
* If I buy bitcoin for R100k locally and send it to a US-based exchange. Then when the price goes to R300k I sell it on a foreign exchange outside of S.A. to USD, not Rand. The price tanks 50% and I can buy back more bitcoin than I had before with the USD. How would I go about declaring those transactions and how would the tax on that work?

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