South Africa Forex Tax Guide 2026

How SARS classifies forex trading profits

For most retail forex traders in South Africa, SARS treats trading profits as revenue income — not capital gains. This is because active forex trading is considered a profit-making activity, not a long-term investment.

The classification matters significantly:

SARS looks at the nature and frequency of your activity. Short-term trades opened and closed within days or weeks, with the intention of profiting from price movements, will almost always be classified as revenue income. The CGT annual exclusion does not apply to revenue income.

What you must declare

South African residents are taxed on worldwide income. This means profits from offshore brokers (including FxPro's offshore entities) must still be declared in rand on your South African tax return. The fact that the broker is based elsewhere, or that profits sit in a foreign account, does not change your obligation to SARS.

All profits and losses must be converted to rand using the exchange rate at the time of each transaction (or a reasonable average rate for the year — consult your tax practitioner on the acceptable method).

Filing requirements for forex traders

Provisional tax (IRP6)

If your taxable income from forex trading exceeds the provisional tax threshold, you must register as a provisional taxpayer and submit IRP6 returns. The two main filing deadlines are:

Annual tax return (ITR12)

Your annual ITR12 return must include all forex trading profits and losses for the tax year (1 March to 28/29 February). Keep detailed records: trade history exports from your broker, bank statements showing deposits and withdrawals, and any trading-related expenses you intend to deduct.

Deductible expenses

Expenses incurred in producing your trading income may be deductible. These could include: data subscriptions used for trading research, trading software or tools, a portion of home office costs if you trade from home, and professional fees (accountant, tax practitioner). Keep receipts and document the direct connection to your trading activity.

SARB exchange control rules

Trading forex through an offshore broker involves moving money out of South Africa. SARB exchange control regulations govern these transfers.

Under the SDA, South African adults may transfer up to R2 million per calendar year (doubled in the February 2026 budget, effective April 8, 2026) for offshore investment purposes — including funding a forex trading account — without needing a tax clearance certificate. Transfers above this require a SARS tax-compliance letter and must be processed through your bank's forex desk.

Importantly, SARB does not prohibit trading with offshore brokers. What it regulates is how money crosses the border. Transfers must use a permitted channel (bank EFT through an authorised dealer), must fit within a permitted allowance, and must be for a declared purpose.

Using an FSCA-regulated local entity

FxPro offers accounts through its FSCA-regulated South African entity. Funding such accounts from a South African bank account still involves foreign currency (the account may be in USD, EUR or ZAR), but the regulatory structure differs from offshore-only brokers. Consult your bank's forex desk and a tax practitioner to understand which SARB category applies to your specific situation.

Practical record-keeping checklist

SARS may ask you to substantiate your trading income. Keep the following for at least five years: