Wednesday, September 16, 2020
New Zealand's Inland Revenue on September 7, 2020, announced the release of updated guidance on the tax treatment of crypto-assets in New Zealand, including virtual currencies.
The guidance explains that cryptoassets are treated as property for tax purposes. There are no special tax rules for cryptoassets but income derived from selling, trading, or exchanging them is taxable.
The guidance clarifies how ordinary income tax rules apply to cryptoassets to help taxpayers understand their tax obligations.
The guidance, divided into guidance for businesses and individuals, sets out the rules for selling, trading, swapping, lending or mining cryptoassets. It sets out the records that must be kept, how to calculate New Zealand dollar values for crypto-assets, rules regarding calculating income and expenses, and tax filing requirements.