New Zealand IRS legalizes cryptocurrency wages, clarifying payment terms and deduction rules.
According to new changes in tax legislation, an employee can receive a salary (or part) in cryptocurrency assets for services provided under an employment contract for a predetermined amount on a regular basis. It is also allowed to receive premiums, bonuses, commissions and tips in the form of digital currencies..
Payments are tied to a fixed amount of fiat, not the number of digital coins or tokens.
The innovation is applicable only to liquid crypto assets that act as digital money or are tied to the price of one or more fiat currencies. At the same time, they must also freely exchange on the exchange for New Zealand dollars. Assets that perform functions similar to shares, shares or debt securities are not eligible.
It is noted that this form of payment is applicable only to remuneration of employees, but not self-employed taxpayers..
The procedure for paying income tax by an employer practically does not differ from the existing one. Salary paid in cryptocurrency, is considered as income, the corresponding part of which is transferred to the fiscal service.
The new rules will come into force on September 1, 2019 and will be valid for at least 3 years.
As a reminder, 15 countries plan to develop a global monitoring system for cryptocurrency transactions to combat money laundering..
text: Ivan Malichenko, photo: Shutterstock
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