Cryptocurrency and Tax guide for New Zealand
We've put together the latest updates on tax and cryptocurrencies to make things easy for you at tax time.
Cryptocurrencies and blockchain technology were not conceived when our current tax legislation was written, and they don't neatly fit any of the categories. The IRD has now published guidance to explain how New Zealand's existing tax laws should be applied to bitcoin and other cyrptocurrencies.
The key message is that cryptocurrency should be treated like property for tax purposes. The impacts of this are that:
- Income tax will normally apply to any sale of cryptocurrency - whether sold for NZD/USD or traded for another cryptocurrency
- GST applies on cryptocurrency transactions