Paragraph 20 (base cost)
Also known as: para 20, paragraph 20 base cost
The Eighth Schedule provision defining "base cost" — the expenditure you may deduct from proceeds when calculating a capital gain.
Definition
Paragraph 20 of the Eighth Schedule sets out what makes up base cost: generally the expenditure actually incurred to acquire the asset, plus directly related costs such as transaction and exchange fees and certain improvement costs. For crypto, paragraph 20 is what lets you deduct purchase price and fees from proceeds to compute the gain.
Example
You buy ETH for R20,000 plus R200 in fees. Under paragraph 20, your base cost is R20,200, which you deduct from proceeds on disposal.
Jurisdiction notes
- South Africa: Paragraph 20 of the Eighth Schedule defines base cost for South African CGT, including directly related acquisition costs such as fees.