New Rules For Crypto Salaries In New Zealand

The inland Revenue Department (IRD), the national tax authority in New Zealand has recently released new guidelines regarding salaries and bonuses paid in crypto, made under s 91 D of the country’s Tax Administration Act of 1994.

The ruling only applies to those who are employed by a third party and who are earn salaries and wages for a fixed amount and as a regular part of his/her compensation.

While this might seem to be a good indication that New Zealand has finally acknowledged the emerging asset class as legal tender it must be noted that the guidance describes cryptocurrencies as an asset and not as a currency.

This was clearly indicated in the guideline when the publication cited IRD’s commissioner saying that cryptocurrencies are not a currency, not legal anywhere and even doubted its ability to be a store of value.

According to the tax agency, crypto assets that are part of the employee's salary or bonus will be subject to pay-as-you-earn tax or Fringe Benefits Tax.