“South Africa is proposing new international reporting rules that will give SARS significantly greater visibility into your crypto transactions beginning 1 March 2026, with the first domestic reporting submissions in 2027 and international exchanges expected around September 2027.. Crypto platforms will be required to report your trades, transfers and wallet activity.”

South Africa is getting ready for one of the biggest shifts in how crypto is taxed. SARS has published draft regulations for public comment, to bring the international Crypto-Asset Reporting Framework (CARF) into local law. These rules come straight from the OECD, the same global body behind the Common Reporting Standard that already governs how financial institutions report bank and investment data across borders.

If you trade or hold crypto in any form, these rules matter for you. Here is what is changing, why it matters and how to prepare.

What is CARF?

CARF is a global system that forces crypto-asset service providers, not taxpayers, to report detailed information about user transactions to their tax authorities.

This includes:

• Who you are, and where you are tax-resident.
• Your ID or tax number.
• Every acquisition, disposal and transfer of crypto during the tax year.
• The rand value of each transaction.
• Movement of crypto between wallets, including transfers to wallets not linked to any known service provider.

In short, CARF closes the information gap that previously made crypto difficult for tax authorities to track.

When does this start in South Africa?

SARS’ draft regulations say the new system takes effect 1 March 2026 . That means the first reporting year will be the 2026/2027 tax year, and the first information exchanges will follow soon after.

Crypto-asset service providers must have their systems ready from day one. Many will start collecting additional customer data long before 2026 so onboarding is compliant.

Who must report your crypto activity?

Under the draft rules, any crypto-asset service provider with a South African connection must report to SARS. This includes providers who are:

• Tax-resident in South Africa.
• Incorporated in South Africa.
• Managed from South Africa.
• Operating a regular place of business here (for example, a local office or staffed hub).

This is a broad definition, intentionally so. Even global platforms may fall under it if they have staff, management or infrastructure in SA.

What information will SARS receive?

SARS will start receiving highly detailed, standardised data that lines up with international rules. This is not a rough estimate or a broad summary. Providers must report, for each crypto-asset you hold:

• Total amounts you paid or received, converted into rand.
• Total number of units bought, sold or transferred.
• Value of wallet-to-wallet transfers.
• Movement to wallets not linked to a regulated provider.
• Your identifying information, including tax number, address, and tax-residency.

The draft regulations specify the exact calculations, currency conversions and valuation methods that service providers must use, including fallback rules for hard-to-value assets

Once SARS receives this, it is automatically shared with other countries where you may be tax-resident.

Why is SARS doing this?

The crypto industry has grown faster than tax rules could keep up. According to the OECD, the shift away from banks and traditional intermediaries created a major blind spot for tax authorities worldwide, making it easy for income to go unreported. CARF is designed specifically to fix that.

SARS wants:

• Better visibility into crypto holdings.
• More accurate assessment of income and capital gains.
• Alignment with global transparency standards.
• Stronger enforcement against evasion.

What this means for everyday taxpayers

1. SARS will know about your crypto automatically

If you trade, stake, lend or transfer crypto, your service provider will send the information directly to SARS. You will no longer be the only source of truth.

2. You still have to declare crypto in your tax return

Crypto is taxed just like any other investment.
 Depending on how you use it, this may be:

• Revenue (if you trade frequently, for staking, mining or lending rewards).
• Capital gains (if you hold as an investment).

CARF does not change the tax treatment, it only changes how SARS receives information.

3. If you have not been declaring crypto, this is the time to fix it

Once CARF goes live, SARS will have full visibility.
 SARS has already said enforcement will tighten, and penalties for non-disclosure could be severe.

The safest route is to use the Voluntary Disclosure Programme (VDP) before the rules take effect.

What you can do right now

1. Make sure your tax returns include all crypto activity

List all disposals, conversions, income and rewards.
If you use multiple exchanges, keep records for each one.

2. Clean up your history

If you have past years where your crypto activity was not declared, consider applying for the VDP. It can reduce penalties and protect you from prosecution.

3. Check your service provider

From mid-2025 you may see new onboarding steps or updated verification requests as platforms prepare for CARF. Make sure your information is correct.

4. Keep records, even after CARF

Your own documentation is still vital.
 SARS may question valuation, source, or cost basis, especially where assets move between wallets.

For most taxpayers, the message is simple:

If you declare everything correctly, nothing changes.
If you haven’t, now is the time to fix it.

TaxTim guides you through your tax return, but we do not calculate crypto gains for you. If your crypto activity is more complex, you may need additional help to make sure everything is calculated correctly and ready for filing.

Thankfully, you’re covered.

On this page, we explain how crypto calculations work, what you need to prepare, and the next steps if you want specialist support.

Need help with your Crypto Calculations?