Airdrop
Also known as: token airdrop, airdropped tokens
A distribution of free tokens to wallets, generally taxed as revenue income at the tokens' rand value when received.
Definition
An airdrop is when a project distributes tokens to wallets, often to reward early users or bootstrap a community. Received tokens are generally revenue income at their fair market value in rands on receipt, and that value becomes the base cost for any later disposal. If the airdrop has no market value when received, valuation can be deferred, but careful records of timing and value are essential. An airdrop you did nothing to earn is treated differently: SARS' Draft Guide to the Taxation of Crypto Assets (1 July 2026) does not treat a fortuitous, unworked airdrop as gross income at all. On capital account it opens at a nil base cost. Held as trading stock, section 22(4) deems its cost equal to market value on receipt. An airdrop you performed a task for (a "worked-for" airdrop) stays ordinary income at fair market value.
Example
You receive an airdrop worth R3,000 on the day it lands. If you worked for it, that R3,000 is income now and becomes the base cost when you later sell the tokens. If it landed with no action on your part, you can record no income for it and the tokens open at a nil base cost instead.
Jurisdiction notes
- South Africa: Airdropped tokens are generally revenue income at rand value on receipt, which then forms their base cost. A fortuitous airdrop you did nothing to earn is the exception: it is not gross income, and the tokens open at a nil base cost.