Tax season opens in July 2026. If you bought, sold, or swapped any cryptocurrency during the 2025/26 tax year, you are required to declare it on your ITR12 — South Africa's individual income tax return.

This guide covers exactly how to do it.

First: Are You an Investor or a Trader?

SARS treats crypto holders in one of two ways, and the tax treatment is very different:

  • Investor (CGT) — you hold crypto for long-term appreciation. Gains are subject to Capital Gains Tax: 40% inclusion rate, maximum effective rate of 18%.
  • Trader (Income Tax) — you trade frequently for profit. Gains are treated as revenue income and taxed at your full marginal rate (up to 45%).

Not sure which one you are? Use our Trader vs Investor Classifier.

For Investors: Capital Gains on the ITR12

On your ITR12, navigate to the Capital Gains section. Under "Financial instruments", you'll find a field specifically for crypto assets:

  • Field label: "Financial instruments — crypto asset(s)"
  • Enter your total proceeds (what you sold for) and total base cost (what you paid, including fees)
  • SARS calculates the gain automatically

Annual exclusion: R50,000 is automatically excluded before inclusion. You don't need to calculate this manually — SARS applies it.

Inclusion rate: 40% of your net gain (after exclusion) is added to your taxable income.

For Traders: Revenue Income on the ITR12

If SARS classifies you as a trader, your crypto profits are revenue income — not capital gains. Declare them under:

  • Source code 4522 — "Local business income: Crypto asset trading"
  • Report gross income and deductible expenses (exchange fees, data costs, etc.)
  • Net profit is taxed at your marginal rate

What You Need Before You File

Gather the following from your exchange(s) before opening your ITR12:

  1. Full transaction history export (Luno: Account → Statements → CSV; VALR: Reports → Transaction History)
  2. Date of every purchase and the ZAR price on that date
  3. Date of every sale and the ZAR price on that date
  4. All trading fees paid (these reduce your gain)
  5. Any crypto-to-crypto swaps — SARS treats these as a disposal at the ZAR value on the day of the swap

Cost Base Calculation

SARS uses the weighted average cost method by default. If you bought BTC at multiple prices, average them:

Example: Bought 0.1 BTC at R400,000 and 0.1 BTC at R600,000 = average cost R500,000 per BTC. Sell price minus average cost = your gain.

Calculate Your Tax Before Filing

Use our free CGT Calculator to estimate your tax before you open the ITR12. It handles both investor (CGT) and trader (income tax) scenarios with the 2026/27 SARS brackets.

Penalties for Non-Declaration

With CARF live since March 2026, SA exchanges automatically report your transactions to SARS. If your ITR12 declaration doesn't match exchange data, SARS will query it. Understatement penalties range from 25% to 200% of the shortfall. The Voluntary Disclosure Programme (VDP) remains open — but only until SARS contacts you first.