Crypto Tax Advisors

Crypto Tax Optimisation

crypto tax transformation
We understand the uncertainty

We understand that there was a lot of uncertainty on how crypto asset gains should be taxed, which resulted in a number of taxpayers not declaring their gains at all. There is clarity now and we can help you fix the situation with the years you have not filed your crypto asset tax gains or losses (to utilise against future gains). Perhaps this is your first tax year with crypto asset gains, in which case we will also help you navigate the tax landscape correctly from the start.

We are aware that in the current environment not a lot of accountants or tax consultants understand crypto assets, however we have been involved in the crypto asset tax trade since 2017. 

We have a deep technical understanding

We are not traditional tax consultants, we understand terminology such as: Margin, Arbitrage, Mining (Proof of Work), Staking (Proof of Stake), Lending, Lightning Network, Maker Rewards, Liquidity Pools, NFTs. Our technical team is led by our founder who is a tax consultant with a computer science degree. 

There are some great crypto tax software solutions, however non of these correctly account for the nuances cause by liquidity pools, staking, ICOs and Nodes. When you do not account for these transactions correctly it will result in inaccurate reports and it may result in inflated taxes. We have developed manual procedures to correctly account for these transactions and to ensure no tax is left on the table. 

We understand DeFi and can create tax optimised reports

We know how to account for crypto tax on ICOs, DAO investments, NFTs staking, leveraged lending and a number of other DeFi transactions. 

We perform a thorough analysis of your trades, resulting in tax optimisation

The crypto tax calculation software requires a deep technical understanding of how software operates and its limitations. You cannot take an approach of data in -> tax report out. You need to understand the technicalities behind missing transactions, missing cost basis, old dead exchanges and the impact thereof. We are technically strong.

Advanced crypto tax optimisation

We have developed a number of advanced techniques to reduce crypto tax payable. This involves trading stock method analysis, wallet segregation, capital gains structuring, ICO and Node optimisation and a number of other techniques. We are actively following international developments to stay up to date with any new boundaries we can explore – such as the recent Joshua Jarret staking court case in the US.

Capital gains vs Trading income with regards to crypto tax can be a contentious issue. In the South African income tax act there is no hard and fast rules regarding when a gain will be classified as a capital gain vs trading income for tax purposes. Do not get confused by the three year holding period rule as this only applies to shares. 

Since crypto assets are defined as assets under the South African income tax act a set of different measures are applied when determining whether the crypto gain is subject to capital gains tax or normal trading income. This typically comprises an evaluation of tests generated by prior court cases and taking a number of factors into account, such as intention when buying and selling the crypto, the fruit tree analogy, holding period and a number of other tests. Therefore it is crucial to get a crypto tax professional to evaluate these scenarios for you.

The shift to DeFi

We have built a business and a team that is driven by continuous learning and embracing the shift to DeFi. It is no longer optional to have a team that is a hybrid of technical and professional members. DeFi and Crypto cannot be understood without a deep technical understanding of the blockchain, smart contracts, ERC20, Web 3.0, DAPPS and a number of other technologies and concepts.

However as we move towards a mainstream and regulated DeFi space – we need the expertise of traditional accountants, tax consultants and legal practitioners to guide the shift.

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Our Software Partners

We use the software that best fits the situation. We are Koinly CPA partners. We have also built a relationship with CryptoTaxCalculator

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We are Professional Tax Advisors specialising in:

Spend your wealth and time, the way you want. Wealth and time is limited, let us help you with tax optimisation and reporting to minimise your tax and maximise your time.

Meet our team and learn more about our qualifications and diverse skillset. After you met our team, feel free to see what our clients have to say about us.
Our head office is based in Stellenbosch, we serve clients globally. We have established clients in:
Let’s have a discussion on how we can reduce your tax and take care of all your compliance issues.
Please contact us if you would like to make use of our services.