Capital Gains Tax (CGT)
Also known as: CGT, capital gains
Tax on the profit made when you dispose of a capital asset, such as crypto held as a long-term investment, for more than its base cost.
Definition
Capital Gains Tax (CGT) applies to the gain realised when you dispose of an asset you hold for investment. In South Africa, CGT is not a separate tax — a portion of the net capital gain is included in your taxable income and taxed at your marginal rate, after an annual exclusion. For crypto, whether a gain is capital (CGT) or revenue (income tax) depends on your intention in holding the asset. A disposal includes selling for fiat, swapping for another crypto, or spending crypto. This is general information, not tax advice.
Example
You buy 1 ETH for R20,000 and hold it as an investment. Two years later you sell it for R35,000. The R15,000 gain is a capital gain that feeds into the CGT calculation on your return.
Jurisdiction notes
- South Africa: SARS includes a portion of the net capital gain in taxable income after the annual exclusion; there is no flat CGT rate.