Futures
Also known as: crypto futures, futures contract
Contracts to buy or sell crypto at a set price on a future date; gains and losses are generally revenue, given their speculative nature.
Definition
A futures contract is an agreement to buy or sell an asset at a predetermined price on a future date. Crypto futures let traders take leveraged long or short positions. Because trading derivatives is inherently speculative and active, the resulting gains and losses are typically revenue in nature, taxed at your marginal rate rather than under CGT. Each settled contract is a taxable event with profit or loss measured in rands.
Example
You open and close a BTC futures position for a R5,000 profit. Given the speculative activity, that profit is generally revenue, taxed at your marginal rate.
Jurisdiction notes
- South Africa: Crypto futures gains and losses are generally revenue in nature, taxed at the marginal rate rather than under CGT.