New Zealand's tax authority, the Inland Revenue Department, provided detailed guidelines on cryptocurrency taxation in a bulletin published in August.
The paper specifically refers to the crypto-related income taxes, which means that crypto revenue in the country is now considered legal. The bulletin describes the application of the income tax to cryptocurrency assets received by employees as part of their fixed remuneration.
It also mentions crypto asset payments that are subject to the local PAYE (pay as you earn) guidelines that regulate all wage taxation in the country, including remuneration for services and bonuses and commissions.
Moreover, the crypto assets mentioned in the document can only be taxable if they are directly converted into fiat currency at an exchange. Otherwise, crypto assets are not enough “money-like” to be subject to income taxation, as they are more similar to vouchers or securities.
Amendments were made to the public ruling 91D of New Zealand's Tax Administration Act 1994 and signed by the Inland Revenue Department’s director of public rulings. The amended ruling will apply for three years starting from Sept. 1, 2019.
Not displaying a significant response to the news, the world’s largest cryptocurrency Bitcoin was trading sideways on Monday, August 12. At press time, the price of 1 bitcoin is $11,280.