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  • New Zealand tax authorities have ruled that cryptocurrencies will be taxed as fiat money.
  • The information was released and clarified via a tax bulletin from the body.  

 

The tax authorities in New Zealand have ruled that income in cryptocurrencies is legal and provided guidance on how exactly it should be taxed.

Income tax treatment of crypto-assets applies to payments in crypto that form part of the employees’ regular salary and are fixed at a predetermined amount or rate “” rather than, for example, payments that form part of an employee share scheme.  

Additionally, it applies only to salary and wage earners “” not to self-employed taxpayers “” covers both remunerations for services and bonuses, commissions and gratuities.

In a tax information bulletin it clarified:

In the current environment where crypto-assets are not readily accepted as payment for goods and services, the Commissioner’s view is that crypto-assets that cannot be converted directly into fiat currency on an exchange are not sufficiently “money-like” to be considered salary or wages.