Pay Tax on Your Bitcoin, Says NZ IRD

April 4, 2018 Taxation in New Zealand

crypto taxWELLINGTON – New Zealand’s tax authorities want to make sure that taxpayers follow the tax rules when it comes to cryptocurrency.

On April 3rd the New Zealand Inland Revenue Department issued guidance on the taxes applicable on profits derived from digital currencies.
The guidelines come as a response to the queries sent to the IRD from taxpayers in regards to their cryptocurrency holdings.

The tax department reiterated that incomes arising from any activity to do with cryptocurrency will be liable for income taxation, even though the currency is entirely digital.

It was advised that for the purposes of taxation, cryptocurrency incomes will be deemed taxable if they provide capital gains, or if they lead to income when used in a transaction, or if they are swapped for a different cryptocurrency.

The IRD suggested that taxpayers keep clear records of their cryptocurrency-based transactions.

Further, the tax authority invited taxpayers to come forward if they believe that they may have inadvertently made mistakes in the declaration of their historic crypto-profits.