For South African taxpayers who’ve overlooked declaring crypto income or gains in past years, time is running out. SARS’s upcoming Crypto-Asset Reporting Framework (CARF) and revised Common Reporting Standard (CRS) will automatically furnish details of your crypto activities from 1 March 2026. The only legal shield available now is the Voluntary Disclosure Programme (VDP) but you must apply before SARS receives your crypto data.
Why the VDP Is Vital Today
The VDP is a legislated mechanism that lets you:
- Claim immunity from criminal prosecution for previous non-disclosures
- Secure relief from understatement penalties, which can reach up to 200%
Without a valid VDP, any undeclared crypto liabilities uncovered post-2026 will attract full penalties, interest and possible prosecution.
Key VDP Requirements under s 227 of the TAA
Section 227 of the Tax Administration Act, No. 28 of 2011, sets out six conditions for a valid disclosure:
- It must be purely voluntary.
- There cannot have been a similar default disclosed by you (or a related person) in the past five years.
- The disclosure must be complete and accurate in all material respects.
- It must concern behaviour listed in the understatement penalty table (s 223).
- It must not result in a SARS refund.
- It must follow the prescribed form and procedure.
Timing Is Everything
Once SARS holds your CARF or CRS data, any attempt to disclose will no longer qualify as “voluntary.” At that point, SARS will apply full penalties and may pursue criminal charges where warranted. Acting now ensures your disclosure remains within the safe harbour.
After 2026: No Place to Hide
CARF—developed by the OECD—treats crypto-assets like traditional financial accounts, mandating crypto-service providers to report your transactions. Meanwhile, the revised CRS brings electronic money products and Central Bank Digital Currencies under the reporting umbrella. Together, these frameworks close every loophole and feed SARS continuous, automated intelligence.
Make Compliance Simple
Commissioner Edward Kieswetter has emphasised that SARS aims to make compliance “easy and seamless” for those who engage correctly. But for those who wait, SARS will show no leniency.
Act Now with CTFSA
Don’t wait until SARS strikes with full force. CTFSA’s tax specialists can:
- Assess your crypto-asset history and quantify potential liabilities
- Prepare and submit your VDP application to secure penalty relief
- Advise on ongoing compliance for CARF and CRS reporting
Reach out to CTFSA to safeguard your crypto affairs before the 2026 crackdown.
