South Africa publishes first draft of law on taxes on cryptocurrencies

[Brazio]

Through an interview conducted by the iAfrikan media, a lawyer who is helping with the first draft of the law that allows the collection of tax on cryptocurrencies in South Africa spoke about the progress that they have made so far. The lawyer stated that they would make more modifications in the tax proposal to correct any ambiguity that they have not taken into account.

Attorney Natalie Napier, a member of a law firm in Johannesburg who is helping with the legal framework, when asked about some of the highlights of the draft, mentions an amendment on the value-added tax (VAT). Ensures that VAT will not be applied "on the issuance, acquisition, collection, purchase, sale or transfer of ownership of any cryptocurrency".

Napier, when asked about the effects that changes in the daily use of cryptocurrencies will have, commented that the effect "will be limited" and that transactions will continue as before. This means that the cryptocurrencies do not apply VAT, no additional fee of any kind for either the buyer or the seller.

When asked about the usefulness of the draft, Natalie mentions that the approach being sought by the South African Revenue Service (SARS) is comparable to that of other regions, such as the European Union, but because of the complexity of the subject, believes that many proposals and amendments are still lacking. He adds that there is still a lack of hearings and that the period to make some kind of change expires on August 16 and then it will be enacted into law.

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