Tax authorities across Africa are cracking down on cryptocurrency users to tackle tax evasion in the rapidly growing digital asset market. With the increasing popularity of crypto assets on the continent, authorities are targeting these transactions for additional tax revenue.
The Kenya Revenue Authority (KRA) is among the agencies looking to capture revenue from crypto trades, a sector that has operated largely unchecked due to its anonymity and lack of regulation. KRA plans to implement a new digital tax system to track these transactions, which have been untaxed despite significant economic activity.
Similarly, the South Africa Revenue Service (Sars) is urging crypto holders to declare their assets in tax filings, warning of improved technology to track non-compliance. Both agencies aim to expand the tax base and reduce the burden on compliant taxpayers while ensuring social benefits reach those in need.
As cryptocurrencies continue to gain traction in Africa, tax authorities are adapting to the digital economy, aiming to close revenue gaps and improve equity in tax compliance.
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