Salary paid in crypto

Remuneration is income

Crypto received as salary, wages or fees is included in gross income at its rand market value on the date it accrues or is received. SARS does not tax it at a special rate — it is ordinary income taxed at your marginal rate (18%–45% for individuals).

PAYE employees

If your employer pays you in crypto, they should operate PAYE on the rand value and issue an IRP5 reflecting the benefit. You declare the IRP5 income on your annual tax return (ITR12). If PAYE was under-withheld because the employer did not value the crypto correctly, you may owe additional tax on assessment.

Independent contractors

Freelancers and contractors paid in crypto must include the rand value in gross income and may need to register as provisional taxpayers if their crypto and other income exceeds the thresholds. Issue invoices in rands (or document the conversion rate used) and keep wallet receipts.

Base cost for later disposal

The rand value included in income when you received the crypto generally becomes your base cost for a later disposal. If you sell the same tokens later, the gain is measured from that income value — not from zero.

Stablecoins and partial payments

Salary paid in USDT or other stablecoins is still remuneration — value it in rands at receipt using a consistent, defensible rate. Partial crypto / partial cash splits need separate documentation for each leg.

Not tax advice

Employment and contractor arrangements differ — confirm PAYE, provisional tax and income timing with a registered tax practitioner.