By Chris Herbst, Chartered Business Accountant in Practice (CBAP) with CIBA, General Tax Practitioner (GTP) with SAIT, Stellenbosch University. Team registered with SAIT, SAIPA and CIBA.
Most South African crypto investors know that SARS taxes crypto. Far fewer know where on the ITR12 the numbers actually go. The return has no single "crypto" page. Instead, crypto runs through three parts of the ITR12: the wizard questions that switch sections on, the section that carries your gain or income, and the statement of assets where your holdings are listed. This guide walks through each of them screen by screen, using the wording of the SARS Comprehensive Guide to the ITR12 Income Tax Return for Individuals (IT-AE-36-G05, effective 29 June 2026). If you still need to work out the gain itself, start with our guide to calculating crypto capital gains tax, then come back here to enter it. This guide is written for South African tax residents; readers outside South Africa are served by CountDeFi (https://www.countdefi.com).
Does SARS require you to declare crypto on your ITR12?
Yes. SARS states on its crypto assets and tax page that normal income tax rules apply to crypto assets and that affected taxpayers must declare crypto gains or losses as part of their taxable income. The onus is on you to declare all crypto-related taxable income in the tax year in which it is received or accrued, and SARS states that not declaring it exposes you to interest and penalties.
Is crypto treated as money by SARS?
No. The ITR12 guide explains that SARS does not regard cryptocurrencies as a currency, because they are not official South African legal tender. The definition of financial instruments in the Income Tax Act has been extended to include them, which is why crypto appears next to shares and unit trusts on the return.
Did CARF change how crypto is taxed?
No. The SARS Budget 2026 frequently asked questions state that the Crypto-Asset Reporting Framework took effect in South Africa on 2 March 2026 and that it is a reporting framework which does not change how crypto assets are taxed. What changes is the data SARS receives from platforms. Our guide to CARF self-certification on a crypto exchange explains the form your exchange asks you to complete.
Which ITR12 wizard questions switch on the crypto sections?
Two sets of wizard questions decide whether the crypto sections appear on your return. If you answer them "No", the sections stay hidden and there is nowhere to enter your crypto figures, so this is the first screen to get right.
What does the capital gains question say?
The guide lists two questions under Capital Gain/Loss: "Did you dispose of any local capital assets attracting capital gain or loss (including crypto assets)?" and "Did you dispose of any foreign capital assets attracting capital gain or loss (including crypto assets)?". Answering "Y" asks how many disposals took place and adds the Capital Gain/Loss container to the return.
What does the trading income question say?
The second question sits under Local Business, Trade and Professional Income (including crypto asset(s)): "Did you derive income from local business trade or profession other than rental income from the letting of fixed property(ies)?". Answering "Y" asks how many separate trading activities you carried on. The guide states that from the 2023 year of assessment this field is prepopulated with "yes" where SARS records show business income, and that you may increase the number but not decrease it.
Does the unemployed question mention crypto?
Yes. If you mark that you were unemployed for the full year, the 2026 return asks you to confirm that you did not receive any income "including selling of assets (e.g. property, shares, crypto assets, etc)". A sale of crypto is therefore something to declare even in a year without a salary.
Which section of the ITR12 does your crypto go in?
Crypto goes in the Capital Gain/Loss section when your disposals are capital in nature, and in the Local Business, Trade and Professional Income section when they are revenue in nature. SARS states on its crypto assets page that whether an amount is revenue or capital is tested under existing case law, and the Budget 2026 FAQ names the factors SARS looks at: frequency, intent and business-like conduct.
How is the character of your crypto decided?
The character is decided on your own facts. The tests are the intention with which you acquired the crypto, how long you held it, how often you traded, whether you traded in an organised, business-like way, and the other facts SARS weighs. The same person can hold one portfolio on capital account and trade another on revenue account. Your practitioner applies these tests to your records before choosing the section.
What does each section mean for the tax you pay?
The Budget 2026 FAQ states that gains from frequent or business-like trading are taxed as ordinary income at your marginal rate, and that gains on crypto held as a long-term investment are subject to capital gains tax at a maximum effective rate of 18% for individuals.
- Investment crypto sold or swapped: Where on the ITR12: Capital Gain/Loss (local); Source code: 4250 gain, 4251 loss
- Foreign capital asset disposed of: Where on the ITR12: Capital Gain/Loss (foreign); Source code: 4252 gain, 4253 loss
- Crypto trading profit: Where on the ITR12: Local Business, Trade and Professional Income; Source code: 4522
- Crypto held at year end: Where on the ITR12: Statement of local assets; Source code: Market value field
How do you enter crypto capital gains on the ITR12?
You enter each disposal's proceeds and base cost in the Capital Gain/Loss section, and the return calculates the gain under source code 4250 or the loss under source code 4251 for local assets. The ITR12 guide confirms that any capital gain or loss realised on the disposal of cryptocurrencies must be declared in this section.
What fields do you complete for each disposal?
The guide lists the fields as Proceeds, Base cost, Primary Residence / Other Exclusions (excl. annual exclusions), Exclusion/Roll-over (excluding annual exclusions), and then Gain (4250) and Loss (4251), which the system calculates. For foreign disposals the same layout uses Gain (4252) and Loss (4253). The return makes provision for a maximum of 10 local and 10 foreign disposals, and the guide states that each disposal must be declared separately.
Is a crypto-to-crypto swap a disposal?
Yes. The guide defines a disposal as any event, act, forbearance or operation of law which results in the creation, variation, transfer or extinction of an asset. Swapping one coin for another ends your holding of the first coin, so the swap is a disposal and its rand value is your proceeds. SARS adds on its crypto assets page that paying for goods or services with crypto is a barter transaction, so the normal barter rules apply.
Do you enter the annual exclusion yourself?
No. The guide states that SARS applies the annual exclusion programmatically under paragraph 5(1) of the Eighth Schedule, so you do not complete it on the return. The exclusion is R40,000 from the 2017 year of assessment and R50,000 from the 2027 year of assessment. It applies to gains and to losses, and any unused portion is not carried forward to the next year.
How do you enter crypto trading income on the ITR12?
You declare trading profit in the section the guide titles Local Business, Trade and Professional Income (including crypto asset(s)), and the Budget 2026 FAQ gives source code 4522 for income from crypto trading. This section is for activities you carry on for your own account, not as an employee.
What else does the trading section require?
The ITR12 guide states that a complete set of financial information must be prepared for each business, trade or profession, and that if you complete this section you must also complete the Statement of Assets and Liabilities for each business activity. If you declared the trade in a previous year, the guide asks you to use the same trade name again.
Can you claim expenses against crypto income?
Yes, within the normal rules. SARS states on its crypto assets page that taxpayers are entitled to claim expenses associated with crypto receipts or accruals, provided the expenditure is incurred in the production of income and for purposes of trade. Exchange fees and the cost of the software you use to keep your records are typical examples.
Can a crypto trading loss be ring-fenced?
Yes. The guide lists "acquisition or disposal of any cryptocurrency" among the identified trades in section 20A(2)(b) of the Income Tax Act. A loss from such a trade can be ring-fenced when your taxable income reaches the level at which the maximum marginal rate applies, which the guide gives as R1,817,001 for the 2024 to 2026 years of assessment, unless the facts and circumstances test shows a business with a reasonable prospect of taxable income within a reasonable period. Our guide to crypto losses on your tax return covers losses in more detail.
Where do you list the crypto you still hold?
Where your return includes the statement of local assets and liabilities, crypto you still hold goes in the field the guide names "Financial instruments - crypto asset(s)", separate from listed shares and unit trusts. The value entered is market value at the end of the year.
Do you need a professional valuation of your coins?
No. The ITR12 guide states that professional valuations are not compulsory and that SARS accepts a market value that is a reasonable best estimate. For crypto, the closing price on a recognised exchange on the last day of February, multiplied by your units, gives that estimate.
Is holding crypto without selling it taxable?
No disposal means no capital gain or loss. The guide states that a capital gains event is triggered by the disposal of an asset, and unless a disposal or deemed disposal occurs, no gain or loss arises. Holding coins is reported on the asset statement where the return asks for it, not as a gain.
What are the practical steps to declare crypto on eFiling?
Work through the return in the order eFiling builds it: wizard first, then the sections the wizard adds, then the asset statement, then a final check before you submit.
- Gather your records. Download the full transaction history from every exchange and wallet you used for the year of assessment, 1 March 2025 to 28 February 2026 for the 2026 return. Our guide to reconciling Luno records before you file shows what a complete export looks like.
- Calculate the year. Work out proceeds and base cost for every disposal, including swaps, and total any rewards or trading profit. Our VALR tax guide covers the VALR export specifically.
- Open the ITR12 on eFiling. Go to Returns Issued, open the Income Tax Return (ITR12) for 2026 and update the wizard.
- Answer the wizard questions. Select "Y" for the capital gain/loss question, the business, trade and profession question, or both, and enter the number of disposals or trading activities.
- Complete the Capital Gain/Loss section. Enter proceeds and base cost; check that the calculated gain or loss appears against 4250 or 4251.
- Complete the trading section. Enter the trade name, the income under 4522 and the allowable expenses, then the Statement of Assets and Liabilities for the activity.
- Complete the asset statement. Enter the market value of the crypto you still hold in the "Financial instruments - crypto asset(s)" field where the return asks for it.
- Submit before the deadline. SARS gives 23 October 2026 for non-provisional taxpayers and 22 January 2027 for provisional taxpayers on its filing season 2026 page.
What records should you keep after you submit?
Keep the exchange exports, wallet histories, your calculation and the bank statements that show rand deposits and withdrawals together in one folder. If SARS selects the return for verification, these are the documents you upload. Our guide to SARS verification of supporting documents explains that process.
What are the common mistakes when declaring crypto on the ITR12?
Most errors we see come from the wizard and from incomplete records, not from the tax rules themselves.
Answering "No" to the wizard
If the capital gain/loss or trading question is answered "No", the sections never appear, and the crypto is left off the return altogether. Check the wizard before anything else.
Declaring only rand withdrawals
Withdrawing rand to your bank is not the taxable event. The disposals are the sales and swaps inside the exchange, and every one of them belongs in the calculation.
Leaving out swaps and losses
The Budget 2026 FAQ states that all transactions, gains and losses, must be reported. A year of losses still goes on the return.
Using the wrong section
Entering frequent trading as a capital gain, or a long-held investment as trade income, misstates the tax. Apply the tests to your own facts before choosing the section.
Missing the trading section's asset statement
The guide requires the Statement of Assets and Liabilities for each business activity once the trading section is completed. Leaving it blank is a common reason a return is sent back.
What if you did not declare crypto in earlier years?
Correct it before SARS contacts you. The Budget 2026 FAQ states that the Voluntary Disclosure Programme lets taxpayers with previously undeclared income, including crypto, regularise their affairs with reduced penalties, and that applications must be made before SARS starts an audit, inquiry or investigation for that period. Our guide to the Voluntary Disclosure Programme for undeclared crypto sets out how it works. If the issue is a return you have not filed at all, read our guide to the SARS late submission penalty.
Do You Need Help With Your ITR12?
CH Consulting prepares and files ITR12 returns for South African tax residents with crypto, from a single exchange account to several exchanges and wallets. We reconcile your records, apply the capital and revenue tests to your facts, complete the right sections on eFiling and keep the working papers ready for verification. See our crypto tax service and crypto tax pricing, read how to appoint a tax practitioner for your ITR12, browse the crypto tax topic hub, or contact us to get started.
