New Zealand took a significant step towards the adoption of cryptocurrencies: the authorities officially allowed people to pay salaries in bitcoins and other cryptocurrencies.
Cryptocurrency Trading in New Zealand
The country's tax service has officially recognized the income of individuals received in cryptocurrency as legal.
In its statement, the tax authority clarified the taxation of digital currencies paid as salaries to wage earners. Tax in this case will be levied at a fixed rate. In addition, self-employed citizens who receive payment in cryptocurrency will not have to pay additional taxes at all.
Inland Revenue Dept. by ForkLog on Scribd
Also, only cryptocurrency wages, which can be directly converted to fiat, will be taxed. This is due to the fact that the digital currency industry is still underdeveloped so that anyone can make everyday purchases using cryptocurrency.
Cryptocurrencies that cannot be directly converted into fiat will not be considered a tax as a salary. “Inadmissible” digital currencies include those that reflect the characteristics of securities (stocks and bonds), vouchers, etc. Such currencies can still be paid to employees, but they no longer have to pay tax.
Thus, New Zealand has opened up great opportunities for all cryptocurrency enthusiasts. Now people can calmly receive a salary in cryptocurrency, although so far this has more difficulties than advantages. This option is more suitable for those who have additional sources of income in fiat, or the most ardent supporters of the industry. When cryptocurrencies are accepted everywhere, salary in them will become a necessity.
Publication date 08/13/2019
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