As the global push for tax transparency accelerates, SARS has released draft regulations for the Crypto-Asset Reporting Framework (CARF) and updates to the Common Reporting Standard (CRS). Effective 1 March 2026, these rules will substantially broaden reporting requirements for crypto service providers and taxpayers. At CTFSA, we can help you understand your obligations and stay compliant.
Why CARF and CRS Matter
• The Organisation for Economic Co-operation and Development (OECD) set CARF in 2022–23 to bring crypto-asset activity into the automatic exchange of information.
• South Africa’s draft CARF leverages the Multilateral Competent Authority Agreement (MCAA) and a standardised electronic format to share data with revenue authorities worldwide.
• Revised CRS rules will now capture new financial products, including certain e-money offerings and Central Bank Digital Currencies, leaving fewer places to hide offshore assets.
• Together, CARF and the updated CRS close gaps in reporting, making non-compliance far more visible on the global stage.
Key CARF Requirements
- Reportable Assets & Activities
– Identifies which tokens, coins, and services must be disclosed. - Who Must Report
– Crypto exchanges, custodians, and other service providers. - Due Diligence Procedures
– Processes to verify customer identities (Crypto Asset Users) and controlling persons. - Data Exchange Mechanism
– Electronic transmission of transaction details under the MCAA.
What the Revised CRS Covers
- Expands the definition of reportable accounts to include digital-only financial products
- Brings additional intermediaries and service models under SARS’s scrutiny
- Reinforces SARS’s existing offshore disclosure notices dating back to 2020
Implications for Crypto Traders
• Increased transparency means SARS can match global information to local tax records.
• Failing to report crypto gains or holdings could trigger audits, penalties, or legal action.
• Commissioner Edward Kieswetter has pledged to make compliance straightforward, but only for those who engage proactively.
Proactive Compliance: Your Best Strategy
- Voluntary Disclosure Programme (VDP)
– Declare undeclared crypto income without the usual penalties
– Ideal for taxpayers who haven’t yet heard from SARS - Professional Tax Advice
– Tailored strategies if you’re already under SARS scrutiny
– First-mover advantage in negotiating liability and avoiding criminal exposure
How CTFSA Can Help
• We guide you through the draft CARF and CRS regulations, translating complex rules into clear action steps.
• Our experts can prepare your VDP submission to minimize penalties and legal risks.
• We establish ongoing compliance frameworks so your crypto activity aligns with SARS expectations—today and into the future.
Don’t wait until enforcement begins. Get ahead of the reporting curve with CTFSA.
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