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 of what you read about Notice 6887 says the same thing: your exchange now reports you to SARS. The regulation itself is more specific than that, and the detail decides what you do next. This guide covers what the Notice says, who it reports, what the platform sends, and what it changes on your ITR12. It is written for South African tax residents. Readers outside South Africa are served by CountDeFi.
What Is Notice 6887?
Notice 6887 is the regulation that brings the OECD Crypto-Asset Reporting Framework (CARF) into South African law. The Minister of Finance published Notice R.6887 in Government Gazette 53735 on 28 November 2025 under section 257 of the Tax Administration Act, and it states that the regulations take effect on 1 March 2026.
Is Notice 6887 a new tax on crypto?
No. It is a reporting rule and it creates no new tax. The SARS Budget 2026 FAQs say that CARF is a reporting framework and that it does not change how crypto assets are taxed.
Who does the Notice place obligations on?
It places the reporting duty on Reporting Crypto-Asset Service Providers, which SARS shortens to RCASPs. The SARS CARF page lists crypto exchanges, brokers and dealers, custody providers, trading platforms and providers that facilitate payments in crypto. It adds that FSCA supervision does not exempt a provider.
Do I have to file anything under the Notice myself?
No. SARS states that individual taxpayers do not report directly under CARF and must continue declaring crypto asset transactions through their normal income tax returns.
Does Notice 6887 Report South African Tax Residents?
Not on the basis of South African residence alone. Section IV of the Notice defines a Reportable Jurisdiction as any jurisdiction other than South Africa, and a Reportable User is a customer resident in one of those jurisdictions. The SARS CARF FAQs (FAQ 26, 5 March 2026) confirm that platforms report users who are not South African tax resident.
So does SARS see nothing about my local exchange account?
It does see it, through a separate channel. The SARS CARF page states that SARS is engaging local providers to obtain crypto asset transaction information for tax compliance purposes, and that this information will be analysed to identify potential non-compliance. External BRS version 1.5 records that SARS adopted the OECD schema for domestic collection and added a wrapper for additional third party data it requires for domestic purposes.
What if I use an offshore exchange?
An offshore platform in a CARF country reports to its own tax authority, and that authority exchanges the information with partner jurisdictions. South Africa committed to begin these exchanges in 2027. From that platform's side South Africa is the foreign jurisdiction, so your South African residence is what makes you reportable there.
What if I am tax resident in two countries?
Every country of residence counts. SARS FAQ 10 says all jurisdictions of residence must be taken into account for reporting. A person resident in South Africa and in another country is reportable in respect of the other country under the Notice, so your self-certification has to name both.
What should I take from this as a South African resident?
Plan on SARS holding your platform data, whichever channel it comes through. Your filing duty does not depend on any of these reports, so the action is the same for every platform: declare on your ITR12. Our guide to the CARF self-certification covers the form your exchange sends you.
What Must a Platform Report Under Notice 6887?
A platform reports who the user is, and what the user did in each type of crypto asset for the period. Section II of the Notice sets out the fields, and the amounts are totals by asset and category.
Which personal details are reported?
Section II lists the name, address, jurisdictions of residence, tax identification number and date of birth of each Reportable User. The SARS CARF page also lists identity number, email address, date of registration with the exchange and the total number of wallets linked to the customer.
Which transactions are reported?
Section II covers these categories for each crypto asset:
- Purchases and sales against fiat currency, with the amounts, units and number of transactions.
- Crypto-to-crypto acquisitions and disposals, at fair market value.
- Reportable retail payment transactions, which the SARS CARF page describes as those exceeding EUR or USD 50,000.
- Transfers to and from the user, subdivided by transfer type where the platform knows it.
- Transfers to wallet addresses the platform does not know to be linked to a virtual asset service provider or financial institution.
Does the report show my gain or loss?
No. The Section II fields are amounts paid and received, fair market values, units and counts. None of them is a base cost, so a platform's totals do not give you a capital gain or a trading profit. You work that out from your own transaction history, as our guide to calculating crypto capital gains shows.
Do transfers to my own hardware wallet show up?
The value and units do, but not the owner's name. SARS FAQ 16 says a platform has no obligation to identify who owns an unknown self-hosted wallet. It also says that if the information raises compliance concerns, a tax authority can request more detail on the wallet addresses through existing exchange of information channels.
When Does Reporting Under Notice 6887 Start?
The first reporting period runs from 1 March 2026 to 28 February 2027, and the first return is due to SARS by 31 May 2027, according to the SARS CARF page. Those dates match the 2027 year of assessment for an individual.
- 28 Nov 2025: What happens: Notice gazetted; Who acts: Minister
- 1 Mar 2026: What happens: Rules take effect; Who acts: Platforms
- By 12 months after effect: What happens: Existing users certified; Who acts: Users, platforms
- 28 Feb 2027: What happens: First period ends; Who acts: Platforms
- 31 May 2027: What happens: First return to SARS; Who acts: Platforms
- Sep 2027: What happens: First exchange abroad; Who acts: SARS, partners
Does the 12-month self-certification window delay reporting?
No. SARS FAQ 18 calls it a due diligence grace period and not a reporting holiday. While a self-certification is outstanding, the platform keeps reporting on available information and marks the tax residence as undocumented or unvalidated.
Does the report cover trades from before March 2026?
The Notice defines the first Reporting Period as starting on 1 March 2026, so earlier trades fall outside it. Your duty to declare those earlier years is separate and the Notice does not affect it.
What Happens if I Ignore My Platform's Self-Certification Request?
The platform has to stop processing your transactions. Section V(B) of the Notice says a platform must suspend effectuating a relevant transaction until it receives a valid self-certification. In some cases, where reasonable efforts have failed and there is a risk of tax evasion or avoided reporting, it can end the customer relationship.
Can SARS penalise me for not giving the information?
Section V(A)(2) treats a failure to give a platform the required information as non-compliance as referred to in section 26(4) of the Tax Administration Act. SARS FAQ 33 explains that administrative penalties under section 210 fall on a person who fails an obligation listed in a Commissioner's public notice, and are notified to that person.
How can I challenge an administrative penalty?
FAQ 33 names request for remission, objection and appeal as the remedies under sections 214 to 220 of the Act. Our notice of objection guide shows the eFiling route.
How Does Notice 6887 Change My ITR12?
It changes nothing on the return. You declare crypto in the same sections of the ITR12 as before, and the character of each amount is decided on your own facts.
Which ITR12 questions apply to crypto?
The SARS Comprehensive Guide to the ITR12 (revision 40, effective 29 June 2026) shows three questions. Two ask whether you disposed of local or foreign capital assets attracting a capital gain or loss, including crypto assets. The third, under Local Business Trade and Professional Income, covers income including crypto assets.
How is the choice between those sections made?
The tests are your intention, your holding period, how often you trade, and the other facts SARS weighs. The outcome is decided on the taxpayer's own facts, and Notice 6887 does not alter those tests. Our step by step guide to declaring crypto on your ITR12 shows where each amount goes.
How many crypto disposals can I enter?
The ITR12 guide says each disposal must be declared separately and that the return provides for a maximum of 10 local and 10 foreign disposals, with shares combined as one disposal.
What Are the Practical Steps Under Notice 6887?
Five steps cover it, and each has a named form or screen.
- Answer the platform's self-certification form. Enter every country of tax residence and your tax reference number exactly as it appears on your eFiling profile. Our VALR guide and Luno guide cover those two platforms.
- Download a full transaction history from each platform. Take the complete export for each tax year and keep it with your tax records.
- Calculate your own figures. Rebuild base cost per asset across all platforms and wallets, because a transfer between your own wallets moves the cost with it.
- Complete the ITR12 wizard on eFiling. Answer the capital asset questions and the Local Business Trade and Professional Income question for the correct year.
- Deal with undeclared years through form VDP01 on eFiling. The SARS VDP guide sets out the requirements, and our guide to declaring past crypto through the VDP walks through them.
Why does the order of the VDP matter?
A VDP application has to be voluntary. The SARS VDP guide says an application made after notice of an audit or criminal investigation related to the default is regarded as not voluntary, unless a senior SARS official makes the findings the guide describes. Waiting until data has reached SARS leaves that risk with you.
Do I need a tax practitioner for this?
The Notice does not require one. If your history spans several platforms or undeclared years, a registered practitioner can take the work off your hands, and our guide to crypto tax practitioners and section 240 explains the registration to look for.
What Are the Common Mistakes With Notice 6887?
Most mistakes come from reading the Notice as if it decides what you declare. It sets out what platforms report, and your ITR12 duty stands on its own.
Assuming a local exchange account means nothing reaches SARS
Section IV of the Notice is about Reportable Users, and SARS separately states that it is collecting transaction information from local providers. Reading the first without the second leads to undeclared returns.
Treating the platform's totals as your gain
The totals show amounts and values, net of fees. Entering them as your gain leaves out base cost and overstates the taxable amount.
Naming one country on a dual residence self-certification
SARS FAQ 10 requires every jurisdiction of residence to be taken into account. A form naming only one is incorrect, and a change of circumstances requires the platform to revisit it.
Answering "No" to the crypto questions on the wizard
The wizard questions decide which sections open. A "No" hides the section in which the disposal or income belongs, and the return is then incomplete.
Waiting until 2027 to look at earlier years
The reporting dates are about platforms. Your earlier years were already due, and the VDP route depends on an application that is voluntary.
Do You Need Help With Notice 6887?
We reconcile your exchanges and wallets, calculate your gains and income, and declare them on your tax return. See how the crypto tax service works, read more in our crypto tax guides, or book a call with us.
