Sold Bitcoin? The Records You Will Need When SARS Comes Knocking
Crypto traders who use different exchanges and wallets may find that working out their tax is not as simple as checking their bank statements.
Crypto
Crypto traders who use different exchanges and wallets may find that working out their tax is not as simple as checking their bank statements.
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Crypto traders who use different exchanges and wallets may find that working out their tax is not as simple as checking their bank statements. A person can trade cryptocurrency for months without giving much thought to the paperwork behind each transaction. They buy Bitcoin, exchange some of it for another coin, move funds between wallets and sell when they see an opportunity.
The problem often comes later, when they need to calculate what they made during the tax year. A bank statement might show a R10,000 deposit into a crypto exchange and a R15,000 withdrawal a few months later. But what happened in between? Was the Bitcoin sold, exchanged for Ethereum or moved to another wallet? Each of these transactions needs to be accounted for.
For South African traders, SARS treats crypto assets under the country's existing income tax rules. Whether a transaction is treated as revenue or capital depends on the circumstances. This is important because the tax calculation can differ depending on how the person uses and holds their crypto.
“Traders cannot simply calculate their tax by comparing the money deposited into an exchange with the money withdrawn from it. Every purchase, sale and crypto swap needs to be accounted for.”
The trade does not end with a bank withdrawal
Consider someone who buys Bitcoin for R50,000. A few months later, the value has increased to R65,000 and they exchange it for Ethereum. They have not withdrawn any money into their bank account, but a disposal has taken place for tax purposes. The R15,000 difference between the original cost and the value at the time of the exchange must be considered. The trader later sells the Ethereum for R80,000. That is another disposal, with a further R15,000 difference before fees and other adjustments.
This is why traders cannot simply calculate their tax by comparing the money deposited into an exchange with the money withdrawn from it.
Finding the original purchase price
The calculations become more difficult when someone has traded on several platforms. They might have bought Bitcoin on one exchange, moved it to a private wallet and later transferred it to another platform before selling. If the original purchase record is missing, establishing what the asset cost becomes a challenge.
Fees can also get lost in the process. Exchanges charge for certain transactions, and blockchain networks may charge for transfers. Traders should keep these details because they may affect the calculation of a gain or loss, depending on the applicable tax treatment. There is also a difference between selling crypto and moving it between wallets. Transferring Bitcoin between two wallets owned by the same person does not automatically amount to a disposal. Records are needed to show that the same assets were simply moved.
What should be in your records?
A trader should be able to trace each transaction from the original purchase to the eventual sale or exchange.
This means keeping:
The date and rand value of each crypto purchase.
Details of every sale and the amount received.
Records of swaps between different cryptocurrencies.
Exchange and network fees.
Wallet addresses and blockchain transaction IDs.
Statements from every exchange used.
Bank records showing deposits and withdrawals.
It is worth downloading exchange statements regularly. Relying on an old trading account to keep all your records is risky, particularly if you stop using that platform or lose access to it.
SARS is also looking at crypto reporting
There is another development traders should be aware of. South Africa introduced the Crypto-Asset Reporting Framework (CARF) on 1 March 2026. The framework requires crypto-asset service providers to report certain customer and transaction information to SARS. It is part of a wider international effort to improve the exchange of tax information relating to crypto assets.
CARF does not introduce a separate tax on Bitcoin or other cryptocurrencies. The existing income tax rules still apply. For traders using international exchanges, it is worth understanding that conducting transactions outside South Africa does not automatically remove their South African tax obligations.
Getting the numbers right
A trader who has bought and sold crypto across several platforms may need to spend time matching transactions before submitting a return. In some cases, a tax practitioner familiar with cryptocurrency may be needed to help establish the correct treatment. The important thing is being able to explain how the figures were calculated. A purchase price, a sale value and the fees charged along the way all form part of that picture. By the time tax season arrives, trying to recover a year's worth of missing transactions can be a difficult exercise.
