The draft includes DeFi, airdrops, and hard forks, applying a 1962 old law to new assets. There is likely a lot of room for interpretation.

SARS has released a draft proposal on taxing crypto assets under the current tax laws, and public feedback is due by August 31, 2026. The draft explains how the Income Tax Act of 1962 applies in situations such as purchasing, selling, exchanging, using, mining, and staking, covering income tax and capital gains tax but not VAT. Crypto assets are treated as intangible assets, and the tax burden depends on the circumstances: frequent traders are generally subject to income tax, while long-term holders may be subject to capital gains tax. Taxable events are triggered by transactions involving fiat currency, crypto-to-crypto activity, payments for goods/services, airdrops, hard forks, and DeFi. South Africa holds an important position in the global crypto market, with about $26 billion flowing in over the past year.