South Sudan

In South Sudan, cryptocurrencies are not specifically regulated and operate in a legal gray area. While there's no dedicated crypto framework, crypto is considered legal. This means it is not banned, but no specific laws govern its use or classification. Instead, crypto activities are subject to the country's general income tax rules. The Bank of South Sudan has stated that virtual currency providers are unregulated. The South Sudan Revenue Authority (SSRA) is responsible for administering taxes that apply to crypto activities. Without specific crypto legislation, the SSRA applies general provisions from the existing Income Tax Act to crypto-related income. Individual investors face a flat 15% tax rate on all crypto income and trading profits, which are generally treated as miscellaneous income. This applies to gains realized when selling crypto for fiat currency. There is no distinction between short-term and long-term capital gains, the 15% rate applies uniformly regardless of how long crypto assets are held. An exemption exists for gains below SDG 100,000. For businesses, the standard corporate tax rate of 35% applies to crypto-related profits. Value Added Tax (VAT) at 17% is applicable when cryptocurrencies are used to purchase goods or services, but not on the act of trading crypto itself. Specific crypto activities like staking, mining, Decentralized Finance (DeFi) yields, and NFT sales are also subject to the 15% tax rate, generally categorized as ordinary or miscellaneous income. Staking rewards are taxed upon receipt. For mining, rewards are taxed as ordinary income, with equipment depreciation allowed over three years. Profits and yields from DeFi activities, as well as sales proceeds and gains from NFTs, are taxed at 15%. Importantly, crypto-to-crypto trades are considered taxable events. They are treated as two separate disposals, with gains calculated based on the fair market value in South Sudanese Pounds (SSP) at the time of the transaction, and taxed at 15%.