Why IT3(b) and IT3(c) Forms Are Not Supplied by Crypto Platforms like AltCoinTrader

In South Africa, every taxpayer – whether earning a salary, freelancing, or trading cryptocurrency – must report income and capital gains accurately to SARS. To assist taxpayers, financial institutions such as banks and investment platforms typically provide IT3(b) and IT3(c) certificates. These certificates consolidate interest, dividends, and capital gains, making it easier to complete your annual tax return.

However, many crypto investors are surprised to find that platforms like AltCoinTrader / VALR / Luno and other South African exchanges do not issue these forms. This can leave individuals uncertain about how to correctly disclose their crypto-related income and gains.

This guide explains what IT3(b) and IT3(c) forms are, why crypto platforms do not provide them, and how this impacts taxpayers, including regular income taxpayers, provisional taxpayers, and crypto traders.

IT3(b): Interest & Dividends

• Purpose: Summarises the interest and dividend income you earned during a tax year.
• Who issues it? Banks, money market funds, and investment platforms.
• Use in tax returns: Helps SARS prepopulate your tax return with interest income and dividends received, ensuring accuracy and transparency.

IT3(c): Capital Gains & Losses

• Purpose: Reports disposals of financial instruments such as shares, unit trusts, or other investments where capital gains tax (CGT) may apply.
• Who issues it? Investment platforms and asset managers that manage financial instruments.
• Use in tax returns: Supports disclosure of CGT events (sale of shares, redemption of unit trusts, etc.) to SARS.

Unlike banks and traditional financial institutions, crypto exchanges in South Africa generally operate as trading platforms, not investment managers. 

Here’s why they don’t supply IT3 forms:

1. Crypto Is Not Classified as Interest, or Dividend-Bearing

• Crypto holdings do not generate “interest” or “dividends” in the traditional financial sense. Therefore, IT3(b) reporting does not apply.

2. Capital Gains Are Not Precalculated

• With shares, a platform can track purchase price and sale price.
• With crypto, transactions often include deposits, transfers across wallets, staking, swaps, and withdrawals to offshore platforms. These complexities make it difficult for an exchange to provide accurate CGT figures.

3. User-Specific Data

• Crypto traders often use multiple exchanges (local and international), private wallets, and DeFi protocols. No single exchange has the full picture needed to generate an IT3(c).

4. Regulatory Landscape

• While SARS expects taxpayers to declare crypto income and gains, there is no statutory requirement for exchanges like AltCoinTrader to issue IT3 certificates – at least not yet.

Regular Income Taxpayers (Non-Provisional)

• Salaried individuals will usually receive an IRP5 from their employer and IT3(b)/(c) from their bank or investment platforms.
• If they also dabble in crypto, they must manually track and disclose crypto-related transactions, as these won’t appear on SARS pre-populated data.

Provisional Taxpayers

• Freelancers, consultants, and individuals with significant non-salary income must file provisional returns twice a year.
• Crypto trades, staking rewards, or mining income must be factored into these estimates. Without IT3 forms, accurate record-keeping and reconciliation is critical.

Crypto Traders & Investors

• Crypto activity can generate income in several ways: Trading gains/losses (buying and selling); Staking rewards or yield farming (treated as income); Airdrops (may be taxable upon receipt); Cross-chain or cross-exchange activity (complicates cost base tracking).
• None of this is automatically reported to SARS. The responsibility lies entirely with the taxpayer to consolidate data and declare it correctly.

1. Assuming SARS Cannot See Crypto Transactions

• SARS actively monitors crypto and has information-sharing agreements with exchanges. Omissions are high risk.

2. Relying Only on Platform Transaction Histories

• Most exchanges provide CSV exports, but they don’t calculate capital gains. These records must be reconciled into a SARS-compliant format.

3. Mixing Wallets Without Records

• Moving crypto between wallets may look like disposals if records aren’t maintained. Without evidence, SARS may treat them as taxable events.

4. Incorrectly Classifying Income

• Staking or mining rewards are income, not capital gains. Misclassification can understate tax liability.

5. Not Keeping Supporting Documentation

• Bank statements, transaction histories, and exchange exports must be retained for at least five years in case of SARS audits.

Managing personal and crypto taxes is complex. It’s advisable to seek professional assistance when:

• You trade across multiple platforms or wallets.
• You’ve earned income from staking, mining, or airdrops.
• You are unsure whether you qualify as a provisional taxpayer.
• Your transactions are high in volume or involve international exchanges.
• You’ve received a SARS verification or audit request.

At CH Consulting, we specialise in both personal income tax and crypto tax reconciliation. Here’s what sets us apart:

• Comprehensive Reconciliation: We consolidate transaction data across multiple platforms and wallets into SARS-compliant records.
• Tax Optimisation: Identify allowable deductions and correctly classify income vs. capital gains.
• Deadline Management: Ensure timely submission of personal and provisional returns.
• Audit Support: Provide supporting documentation and respond to SARS verification requests.
• Expertise in Complex Crypto Scenarios: From staking to DeFi, we understand the nuances that most general tax practitioners overlook.

Q1: If my exchange doesn’t issue IT3 forms, how do I prove my crypto income and gains?
A1: By keeping detailed transaction histories, wallet records, and bank statements. A professional can reconcile these into SARS-compliant disclosures.

Q2: Do I need to submit crypto details if I only made a loss?
A2: Yes. Losses may offset gains in the same or future years, but they must be declared.

Q3: Do I need to pay provisional tax if I only trade crypto occasionally?
A3: If your non-salary income (including crypto) exceeds R30,000 in a year, you may be considered a provisional taxpayer.

Q4: Will SARS automatically receive my crypto trading information?
A4: Not always, but SARS is increasing oversight and has access to exchange records through reporting agreements. It is safer to declare voluntarily.

Q5: Can CH Consulting assist if I use multiple exchanges?
A5: Yes. We consolidate data from all exchanges, wallets and cold storage; based on the data provided, into a single compliant record. This can include, but is not limited to AltCoinTrader, Luno, Binance, Coinbase, and others.

IT3(b) and IT3(c) forms make tax reporting easier for traditional investments, but crypto platforms in South Africa do not issue them. This places the responsibility squarely on taxpayers to track, reconcile, and disclose crypto transactions accurately. Professional guidance ensures compliance and minimises risk.

Need Expert Help?

You are welcome to book a call if you want us to consult on your specific circumstances or complete your calculation and return on your behalf.

You can also email us at info@chconsulting.co.za if you have any questions; or check out our Google Reviews to see what other customers have experienced when working with us.