Page 46 - Profmark Tax Guide 2025 Digital

CRYPTO ASSETS

Crypto assets are regarded as a financial instruments for Income Tax purposes
and not as a currency� As such the profit or loss on crypto asset trading could
either be taxed as normal income if the intention of the investor was to speculate
or alternatively the profit or loss could be regarded as a capital gain or loss if the
intention of the investor was to hold it long-term as a capital investment�
For VAT purposes the exchange of crypto assets into South African Rand are
regarded as an exempt supply�

CARBON TAX

Carbon tax became effective from 1 June 2019� The tax is being implemented
in a phased manner, taking into account SA’s NDC commitments to reduce
greenhouse gas emissions� The first phase will be from 1 June 2019 to
31 December 2025, and the second phase from 2026 to 2030� This ensures
alignment with our NDC commitments under the Paris Agreement�
The phased introduction of the carbon tax, through a relatively modest initial
effective tax rate that will increase over time, provides a strong price signal to
both producers and consumers to change their behaviour over the medium to
long term and promote a systematic transition to a low-carbon economy by
opening up new business opportunities and stimulating innovative business
models�
The implementation of the carbon tax will be complemented by a package of tax
incentives and revenue recycling measures to minimise the impact in the first
phase of the policy (up to the year 2025)�

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