Why does Luno need my tax details?

From 1 March 2026, as part of the Crypto-Asset Reporting Framework (CARF) and expanded Common Reporting Standard (CRS), we’re required to verify the tax residency of all our South African customers when they sign up for a Luno account.

These requirements are part of global tax transparency standards developed by the Organisation for Economic Co-operation and Development (OECD) and adopted by SARS to align the crypto industry with the broader financial sector. This ensures that digital wealth is treated with the same level of oversight as traditional bank accounts.

As the South African Revenue Service (SARS) mandates that these standards apply to all reporting providers with a South African presence, Luno must collect all tax residency declarations from all customers. For customers identified as tax residents of South Africa or any other reportable jurisdiction, Luno is required to share crypto-asset activities and balances with SARS. This information is used for domestic tax administration and is automatically exchanged with relevant international tax authorities under global transparency agreements

This proactive measure ensures that both you and Luno remain compliant as local and international tax transparency standards continue to evolve.

What is tax residency?

Your tax residency is the country where you’re legally recognised as a resident for tax purposes, and where you file tax returns. For most people, this is the country where you live for the majority of the year. However, under South African law, you are also considered a tax resident if South Africa is your "real home" (where you naturally return to after traveling), even if you are currently abroad.

You may still be a tax resident even if:

• You’re currently unemployed
• You earn below the tax threshold
• You don’t currently pay any income tax

What is a Tax Identification Number (TIN)?

A Tax Identification Number (TIN) is the unique combination of letters or numbers your country uses to identify you for tax purposes. In South Africa, this is your SARS Tax Reference Number.

Some countries don’t issue a separate tax number. In those cases, a national ID number, passport number, or another official identifier may be used instead.

We only ask for a TIN if the country you have selected as your tax residency requires one under international reporting standards.

What is your tax number used for?

We’re required to collect your Tax Identification Number (TIN) - known in South Africa as a Tax Reference Number - for every country where you’re a tax resident. This enables us to:

• For South African Tax Residents: report your crypto asset activities (CARF) and year-end account balances (CRS) to SARS for domestic tax compliance.
• For Foreign Tax Residents: identify your tax residency and share your reportable crypto-asset activities (CARF) and year-end account balances (CRS) with SARS. Under international agreements, SARS will then automatically exchange this information with the tax authorities in your country of residence.

I don’t know my tax number. What should I do?

You can usually find your Tax Reference Number through the following channels:

• SARS eFiling: Log in to your profile and check your user details or your latest Statement of Account.
• Official SARS Documents: Look for your Notice of Registration (IT150) or a previous tax return (IT12).
• Your Employer: Your tax number is usually listed on your monthly payslip or your annual IRP5 certificate.
• SARS SMS Service: You can request your tax number by sending an SMS to SARS at 47277 with the message: TRN [Space] your ID Number.

If you are a tax resident in a country that doesn’t issue TINs, you won’t be asked to provide one.

If you believe you’re not a tax resident in any country, you can select that option and provide a reason during onboarding to ensure your account remains compliant with global reporting standards.

What exactly is shared with SARS?

For South African Tax Residents

We collect your Tax Reference Number to confirm your status as a local tax resident. Luno is legally required to share your crypto asset summaries (total values and volumes) under CARF and relevant year-end account balances under CRS with SARS. Luno does not calculate your tax or provide advice; we simply provide the data that helps you and SARS complete your tax profile. 

For Foreign Tax Residents

We collect your Tax Reference Number to confirm if you are a tax resident in a reportable country under CARF and CRS. All reportable countries under CARF participate in the international exchange of tax information so if you are a tax resident in a reportable country, Luno is legally required to share your tax identity, annual transaction summaries under CARF, and year-end account balances under CRS with SARS. SARS then shares this information with the tax authority in your country to ensure global tax transparency.

We do not send real-time updates. Instead, we submit a standardised annual report for the tax year (March to February), as required under CARF and CRS. This report includes:

• Your Identification Details: Name, address, and your Tax Identification Number (TIN).
• Transaction Information (CARF): Aggregate values and units of relevant crypto-asset transactions (including buys, sells, exchanges, and certain payments).
• Transfer Information (CARF): Certain transfers of crypto-assets into or out of your Luno wallet, including transfers to unhosted (private) wallets.
• Account Balance Information (CRS): The year-end balance or value of your crypto-asset holdings, providing visibility on total assets even if you did not trade during the year.

Providing your tax details is a mandatory requirement for all Reporting Crypto-Asset Service Providers (RCASPs), including Luno. This information allows us to satisfy our legal and global regulatory obligations under CARF and CRS, ensuring we can continue providing you with a secure, compliant, and uninterrupted service.

Frequently asked questions