Sudan

Sudan classifies cryptocurrencies as property under the Income Tax Act 1986, rather than as money or legal tender. Peer-to-peer holding and trading of crypto are legal, but there is no dedicated legal framework for digital assets. Instead, general laws, including income tax and anti-money laundering regulations, apply. The Central Bank of Sudan (CBOS) has issued warnings regarding the risks associated with cryptocurrencies and explicitly prohibits crypto mining activities. The Taxation Chamber of the Ministry of Finance (TCMF) is the primary authority governing crypto taxation in Sudan, operating under the established Income Tax Act 1986. For individuals, profits derived from crypto activities, such as trading, are taxed as miscellaneous income at a flat rate of 15%. This rate applies uniformly, as Sudan does not offer any reduced rates or exemptions for long-term crypto holdings, there is no distinction between short-term and long-term gains. An exemption applies to gains less than SDG 100,000 per tax year. Selling cryptocurrency for fiat currency is considered a taxable event. A Value Added Tax (VAT) of 17% is imposed only if crypto is directly used for the payment of goods or services. Specific crypto activities also face taxation. Staking rewards are treated as ordinary income and taxed at 15% upon receipt. Although mining is explicitly prohibited by the Central Bank of Sudan, if undertaken, rewards are taxed at 15% as ordinary income. Profits from Decentralized Finance (DeFi) activities and Non-Fungible Tokens (NFTs) are likely treated as miscellaneous income and taxed at 15%, though official guidance for these areas is currently unavailable. When one cryptocurrency is swapped for another, it is considered a taxable event, treated as two disposals with gains calculated based on the fair market value in Sudanese Pounds (SDG) at the time of the trade. A FinTech Bill is currently in draft, with debate anticipated in Q4 2025. This proposed legislation aims to establish a licensing framework for Virtual Asset Service Providers (VASPs), introduce a 2% withholding tax on crypto-to-fiat cash-outs exceeding USD 50,000, and create a regulatory sandbox.