South Africa’s tax authority published draft guidelines on Wednesday that outline how crypto assets are taxed under the Income Tax Act and capital gains rules. The guidance clarifies that crypto activities such as trading, swapping, and spending are treated as disposals for tax purposes and emphasizes that tax treatment depends on the taxpayer’s specific circumstances. The draft states that crypto assets are not legal tender or foreign currency but are considered intangible assets. SARS said the taxpayer’s intention at the time of acquisition, disposal, and while holding the asset influences whether the activity is classified as trading or long‑term investment, requiring a broad assessment of relevant facts. The document also notes that crypto may be subject to donations tax, with rates ranging from 20% to 25% based on value. Public comment on the draft is open until August 31, and the authority said the guidance is intended to provide interpretive clarity rather than introduce new legal obligations. The proposal follows Chainalysis data showing about $26 billion in crypto value received in South Africa over the past year, with institutional transactions representing the largest share, and it is expected to affect millions of holders as the rules are finalized.