South Africa wants to track and tax Bitcoin transactions

nRunaway Comment: The South African Revenue Agency is currently engaged with some well-known technology companies in the hope of tracking and taxing increasingly popular bitcoin deals on the ground. The move is in line with the tax authorities in the United States, South Korea and India and shows that South Africa is also stepping up its participation in this emerging market. In the future, we may see more similar initiatives.n
nTranslation: Inan
The use of Bitcoin in South Africa is rapidly growing, mainly for trading. Encrypted currency is currently very popular there and people even use it to pay for traffic fines. This situation prompted the South African Revenue Agency (SARS) to explore ways to ensure that all taxes that were taxable were not missed. It is reported that the agency is in talks with leading international technology companies to find an effective way to track the country’s cryptocurrency transactions for taxation.n
Dr. Randall Carolissen, SARS research director, said:n
n”As you can imagine, blockchain technology is hard to understand. Because we have very little information to find, we are talking to some of the top technology companies in the world. They are also providing similar services to Canada and the United Kingdom, and we want to be able to handle this. Technology. “n
nHe added that the agency is also consolidating its ties with the Reserve Bank of South Africa (SARB) to study ways to better link cross-border outflows with capital inflows to ensure that people do not hide much.n
global cooperation n
Dr. Carolissen explained: “Right now, we are treating cryptocurrencies as capital, the kriging, and if you buy cryptocurrencies at a particular point in time and then sell it, you may We experience capital appreciation and then we treat it as a capital gains tax. “n
According to him, SARS is working with similar agencies in different countries to address this issue through the implementation of new policies by the Organization for Economic Co-operation and Development (OECD). This cooperation is said to provide them with detailed advice on handling cryptocurrencies.n

Carolissen said:n
n”We are part of the OECD working group and naturally include this in our policy environment, so that’s where we come from. In fact, South Africa is considered one of the key players in this cryptocurrency environment.”n
nIt is not surprising South African interest in the field, given that the tax authorities in the United States, South Korea and India have recently started to study bitcoin. At the moment, in addition to forcing local exchanges to report all transactions and disclosing deals to citizens, it is unclear what steps these regulators can take to track such deals.n

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