On 1 March 2026, South Africa became one of the first countries to implement the Crypto-Asset Reporting Framework (CARF) — the OECD's global standard for crypto tax transparency.

If you hold crypto on Luno, VALR, or any other South African exchange, your transaction data is now automatically reported to SARS. And through automatic information exchange agreements, that data is shared with tax authorities in over 120 countries.

What SARS Can Now See

Under CARF, SA exchanges must report the following to SARS for every user:

  • Your full name, ID number, and tax number
  • Every buy and sell transaction — date, amount, and ZAR value
  • Crypto-to-crypto swaps (ETH → BTC counts as a disposal)
  • Transfers to and from external wallets
  • Total ZAR value of holdings at year end

This is automatic. You don't need to trigger it. Every SA-registered exchange is legally required to submit this data.

What About International Exchanges?

If you use Binance, Kraken, or Coinbase — exchanges registered outside SA — they are also subject to CARF reporting requirements in their home jurisdictions. Through bilateral automatic exchange agreements, SARS receives this data from participating countries.

The practical implication: SARS has a far more complete picture of your crypto activity than most people realise.

What This Means for Your Tax Filing

The ITR12 (individual tax return) has a dedicated section for crypto assets. You are required to declare:

  • Capital gains — use source code field "Financial instruments — crypto asset(s)"
  • Trading income — use ITR12 source code 4522 if SARS classifies you as a trader

SARS cross-references what you declare against what exchanges have reported. Discrepancies trigger audits and penalties.

The SARS Annual Exclusion

The good news: individuals get a R50,000 annual exclusion on capital gains (up from R40,000 in the 2025/26 year). Only 40% of gains above R50,000 are included in your taxable income.

So if your crypto gains for the year were R80,000:

  • Less R50,000 exclusion = R30,000 net gain
  • 40% inclusion = R12,000 added to taxable income
  • At 36% marginal rate = R4,320 tax owed

The Voluntary Disclosure Programme (VDP)

If you have undeclared crypto gains from prior years, the VDP allows you to come clean with 100% penalty relief (provided there was no intent to evade). Once SARS has your CARF data and audits you, this option closes.

The window to act proactively is now.

Check Your CARF Compliance Risk

Use our free CARF Compliance Checker to assess where you stand — it takes under 2 minutes and tells you exactly what action to take.