ar.rev
Senior Member
good day chaps, I hope you are prospering on these past couple months on the crypto bear market but massing those bags. I have contact my accountant and spoke to a lawyer regarding crypto Tax laws and how SARs has come to taxing those who are invested into crypto. ultimately what it has come down to is...
My question is to those who are experienced on the matter or have clarity on the subject, if you could please enlighten us with exactly how its processed by SARS, and (not tax evasion) but any loop holes to avoid paying SARs such exorbitant percentages regarding small to large profits... local to cross boarder exchanges and wallets with yield returns and swaps, eg living off that sexy 10% yield on USDT/USDC. and as you also know some assets require swaps in order to be obtain and don't carry any transactional history of the swap.
or ultimately if we wanna preserve those Lambo gains one would have to emigrate to Dubai or Portugal where tax's don't apply or are extremely forgiving on the tax percentage.
- You only pay tax if you make a profit and when the asset is sold or swopped,
- The annual net of all profits and losses are amalgamated and you pay tax on the net profit only,
- The gain you make is either capital or revenue. The distinction between the two is a very complex area but basically its about intention if you are actively trading then your motive is profit and that is revenue, if you are long term investing then that would be capital. Long term investing is supported by the length of time you hold the investment for.
- If you holding that asset for more than 2 years SARS says that is capital but holding it for less can also be capital,
- If you make a capital gain then of the gain 40% is taxable, 60% is tax free. You therefore pay tax only on 40% so the amount you pay is relatively low,
- Revenue gains are added on top of your other income and taxed at your marginal rate,
- Selling the Crypto or swopping Crypto (say Bitcoin for Ethereum) that is a taxable event
- Mining is revenue it is not tax free
My question is to those who are experienced on the matter or have clarity on the subject, if you could please enlighten us with exactly how its processed by SARS, and (not tax evasion) but any loop holes to avoid paying SARs such exorbitant percentages regarding small to large profits... local to cross boarder exchanges and wallets with yield returns and swaps, eg living off that sexy 10% yield on USDT/USDC. and as you also know some assets require swaps in order to be obtain and don't carry any transactional history of the swap.
or ultimately if we wanna preserve those Lambo gains one would have to emigrate to Dubai or Portugal where tax's don't apply or are extremely forgiving on the tax percentage.
