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.
Example
You receive an airdrop worth R3,000 on the day it lands. That R3,000 is income now and becomes the base cost when you later sell the tokens.
Jurisdiction notes
- South Africa: Airdropped tokens are generally revenue income at rand value on receipt, which then forms their base cost.