Best way to buy Crypto in SA

[BushCow]

Hi guys - Im sure this has been asked a lot of times!
I am looking at getting back into Crypto after a few years break.
What is currently considered the best way to buy Crypto in SA - think a few years back I used Luno.

Much appreciated!

I am a year late but try Altcoin trader!

 

[natpoeper]

I don't know what's more impressive about this thread: the number of spambots, or the number of users that have since been banned

 

[Dom]

I don't know what's more impressive about this thread: the number of spambots, or the number of users that have since been banned

I still think it is that everyone is still forgetting about tax (or the fact that SARS knows).

 

[Phoenix Energy]

I still think it is that everyone is still forgetting about tax (or the fact that SARS knows).

Exactly!

As soon as your crypto touches Luno or Valr and you try to withdraw it, SARS already knows about you. Best way is to swap on a exchange like KuCoin, ask if anyone wants to buy crypto from you for ZAR, then just send it to their wallet on that particular exchange and they EFT you the money on a pre agreed upon exchange rate.

I myself havent withdrew any crypto earnings yet and I dont plan to for a while unless I really need it.

PS I store my crypto on a hardware wallet (Not your keys, not your Coins)

EDIT: This isnt advice, its just what I plan on doing when I need to sell my coins. This isnt financial advice

 

[LouisABC]

Exactly!

As soon as your crypto touches Luno or Valr and you try to withdraw it, SARS already knows about you. Best way is to swap on a exchange like KuCoin, ask if anyone wants to buy crypto from you for ZAR, then just send it to their wallet on that particular exchange and they EFT you the money on a pre agreed upon exchange rate.

I myself havent withdrew any crypto earnings yet and I dont plan to for a while unless I really need it.

PS I store my crypto on a hardware wallet (Not your keys, not your Coins)

EDIT: This isnt advice, its just what I plan on doing when I need to sell my coins. This isnt financial advice

Would be horrible advise, tax avoidance.

 

[Dom]

Exactly!

As soon as your crypto touches Luno or Valr and you try to withdraw it, SARS already knows about you. Best way is to swap on a exchange like KuCoin, ask if anyone wants to buy crypto from you for ZAR, then just send it to their wallet on that particular exchange and they EFT you the money on a pre agreed upon exchange rate.

I myself havent withdrew any crypto earnings yet and I dont plan to for a while unless I really need it.

PS I store my crypto on a hardware wallet (Not your keys, not your Coins)

EDIT: This isnt advice, its just what I plan on doing when I need to sell my coins. This isnt financial advice

SARS can get access to your bank records too (if they see the need).

 

[thecurto]

SARS can get access to your bank records too (if they see the need).

Here's a good article if you really want to get into the weeds: https://koinly.io/guides/crypto-tax-south-africa/

My understanding is that you can qualify for 18% tax if you are treating Crypto the same way as investing in stocks i.e. buying with ZAR, hodling for over a year (no withdrawals) and not swapping/trading for other crypto or moving it between wallets. The moment you do that, you're hit with the crazy 45%

Please feel free to correct me if I've misunderstood this

Edit: I see there is also an exemption for up to R40,000 which is quite nice!

 

[Phoenix Energy]

SARS can get access to your bank records too (if they see the need).

IIRC SARS can always access your bank and the banks dont stand in the way of that. Can you not just state that cash as payment for services rendered for that specific person?

 

[Dom]

IIRC SARS can always access your bank and the banks dont stand in the way of that. Can you not just state that cash as payment for services rendered for that specific person?

You cannot - they will ask the bank & if they do not truthfully disclose they are in contravention of FICA & AML (this will just worsen their woes).

To sum up - if you want to fuck with someone, don't make it SARS.

 

[WEST]

Here's a good article if you really want to get into the weeds: https://koinly.io/guides/crypto-tax-south-africa/

My understanding is that you can qualify for 18% tax if you are treating Crypto the same way as investing in stocks i.e. buying with ZAR, hodling for over a year (no withdrawals) and not swapping/trading for other crypto or moving it between wallets. The moment you do that, you're hit with the crazy 45%

Please feel free to correct me if I've misunderstood this

Edit: I see there is also an exemption for up to R40,000 which is quite nice!

You arent taxed at 45% from the get go, you will be taxed at a % relative to where you fall on the tax scale.

 

[Dom]

You arent taxed at 45% from the get go, you will be taxed at a % relative to where you fall on the tax scale.

Not with crypto, it is taxed as a Capital Gain (not a progressive scale as for standard income tax).

 

[dom1nator]

Not with crypto, it is taxed as a Capital Gain (not a progressive scale as for standard income tax).

When / how do they classify it as Capital Gain vs. Income Tax? Like what's the metric that determines under which it falls? And what taxes are applicable if you spend the crypto directly instead of selling for fiat, withdrawing to bank and then spending?

 

[Dom]

When / how do they classify it as Capital Gain vs. Income Tax? Like what's the metric that determines under which it falls? And what taxes are applicable if you spend the crypto directly instead of selling for fiat, withdrawing to bank and then spending?

Crypto Assets & Tax | South African Revenue Service

A crypto asset is a digital representation of value that is not issued by a central bank, but is traded, transferred and stored electronically by natural and

www.sars.gov.za

 

[dom1nator]

Besides Carbonite you can't buy anything with crypto in SA correct (I know you can use shopping.io or other platforlms but I am talking SA specifically) ? If you want to cash out you need to use Luno, Valr etc that pays into your bank account hence easy to track for the government. Assume all crypto gains fall under income tax when doing your calculations maybe its less and then you win but pay you will pay.

I think you can buy stuff at Pick n Pay with Bitcoin.

 

[L-Dog]

I think you can buy stuff at Pick n Pay with Bitcoin.

Correct haven't tried it but remember hearing about it months ago although its on selecet stores. Many of the apps like Binance now have the built in Lightning wallter so things more companies might follow accepting payment.

 

[Taladas]

Are there any P2P services or people looking to swop out fiat for BTC?

 

[Adrenalin]

Avoiding SARS. Buy at ATM (Fees are a bit high) move to dex or wherever you want. draw out of ATM again.
Surely that would work?
They going to lose the battle to get people to pay Tax on crypto.

 

[Adrenalin]

Are there any P2P services or people looking to swop out fiat for BTC?

Alot of people do this. I've bbuilt reps with a few people so buy from them normally.

 

[JanvN]

If this is a still a thing, and people are looking to buy/sell privately in large qty, drop me a PM

 

[ReactJS | TheDarkLord]

If this is a still a thing, and people are looking to buy/sell privately in large qty, drop me a PM

how large we talking?

 

[JanvN]

how large we talking?

Without disclosing numbers on the public post - try me on for size and DM me how much you want to buy/sell.

Then you can report back if it is "large" enough for you

 

[BrilliantTech]

Easy Equities has really low fees and is in my opinion the best if you want to buy the most popular crypto tokens