In the Capital Gains section of the annual tax return (ITR12), SARS requires you to insert the relevant asset source code for the item you have sold. However, when you sell financial investments (e.g shares) the financial institution issues an IT3(c) which shows the profit/loss source code (i.e4250/4251) and not the asset source code. This causes confusion for taxpayers, who think these codes on the IT3(c) are the ones to use. However, 4250/4251 (local profit/loss codes) and 4252/4253 (foreign profit/loss codes) are not the correct source codes to use in the Capital Gains section of your ITR12.
DO NOT USE SOURCE CODE 4250 (GAIN: LOCAL)
Use one of these instead:
6506 - GAIN: Financial instruments – Listed, including assets of which prices are regularly published in newspaper
6508 - GAIN: Financial instruments – Unlisted
6520 - GAIN: Financial instruments – Crypto Asset(s)
For a full list of local asset source codes, please click here.
DO NOT USE SOURCE CODE 4251 (LOSS: LOCAL)
Use one of these instead:
6507: LOSS: Financial instruments – Listed, including assets of which prices are regularly published in newspaper
6509: LOSS: Financial instruments – Unlisted
6521: LOSS: Financial instruments – Crypto Asset(s)
For a full list of local asset source codes, please click here.
DO NOT USE SOURCE CODE 4252 (GAIN: FOREIGN)
Use one of these instead:
6534: GAIN: Listed Financial Instruments -excluding Cryptocurrency
6536: GAIN: Unlisted Financial Instruments -excluding Cryptocurrency
6546: GAIN: Financial Instruments - Cryptocurrency
For a full list of foreign asset source codes, please click here.
DO NOT USE SOURCE CODE 4253 (LOSS: FOREIGN)
Use one of these instead:
6535: LOSS: Listed Financial Instruments -excluding Cryptocurrency
6537: LOSS: Unlisted Financial Instruments -excluding Cryptocurrency
6547: LOSS: Financial Instruments - Cryptocurrency
For a full list of foreign asset source codes, please click here.
