South African President Cyril Ramaphosa has revealed that the country is currently considering a new tax law early next year, January 2020.
The South African Revenue Service (SARS) has recently passed a cryptocurrency tax bill.
In a related context, the new project came within the framework of taxation of those currencies in the country.
In South Africa, the word “currency” is not defined in the income tax law. Cryptocurrencies are not an official bid for South Africa and are not widely used, nor are they accepted as a means of payment or trading. As such, they are not considered as currency for income tax or capital gains tax (CGT) purposes.
Instead, it is considered as an asset of an intangible nature. ”There is no VAT on cryptocurrency transactions.
The bill also states that cryptocurrency transactions are exempt from VAT. This decision is based on the fact that the Revenue Service considers these transactions to be separate from financial services transactions. Therefore, the purchase, sale, transfer, ownership, issuance or retention of cryptocurrencies will not be levied on VAT under the proposed tax form.
In a recent interview with iAfrikan, Natalie Napier, a partner at the Johannesburg-based law firm Hogan Loves, provided some insights into the cryptocurrency tax project. In response to the question about the potential impact of this step on the currency market in the country.
“The proposed changes will have a limited impact on the daily use of currencies,” Napier said. For the consumer, this means that they will not have to pay or collect any VAT in any cryptocurrency transaction. The benefit is that there will be no VAT surcharge, which will increase the costs associated with cryptocurrency transactions. ”
Napier also announced that there are further adjustments in the tax framework to correct and clarify any ambiguity. The cryptocurrency sector in South Africa continues to thrive even with elaborate tricks. A recent survey showed that about 38% of South Africans wish they had invested in cryptocurrencies early.
South Africa is enacting a law to tax the country's carbon emissions
South African President Cyril Ramaphosa has issued a tax on carbon emissions from the continent's most polluted companies.
The value of the tax, which comes into effect in early June, is estimated at 120 South African rand per tonne of carbon dioxide, Radio Africa 1 reported.
"Climate change is one of the biggest challenges facing humankind, and the main objective of the carbon tax is to reduce greenhouse gas emissions in a sustainable manner," the South African Treasury said in a statement.
South Africa: Minimum Wage Enters into Force January 1
South African President Cyril Ramaphosa has revealed that the country is currently formally considering the implementation of the new wage law, which is expected to come into force in January.
In a related context, this came on the basis of "Ramavoza" in the official speech, which was broadcast in the city of Sotio, west of Johannesburg, which was disclosed by South African television.
The new legislation is expected to force all South African companies to pay a minimum wage for all of their work, which is about twenty rand ($ 1.42) an hour, so that it will take effect on the first day of 2019, Ramavoza said in Haditha.
On the other hand, if the law is supposed to be implemented on the previously planned date of the first of May, but saw some delays due to the final numbers of the order for the scarves in early January.