Bitcoin salaries recognized in New Zealand as legal

The New Zealand Tax Authority recognized the receipt of income in cryptocurrencies by hired workers and published a guide to its taxation.

So, in digital assets, only up to half of a salary can be received with reference to its size or to a fixed rate.

Note that all income earned by employees in cryptocurrency is subject to taxation, including remuneration for services, bonuses, commissions and gratuities. However, the new rules do not apply to self-employed taxpayers.

At the same time, in order for the cryptocurrency received by the employee to be taxable, it must be available for conversion into fiat funds and not have restrictions associated with its immediate spending. We are talking about native digital currencies of peer-to-peer payment networks (such as bitcoin), and not about utility tokens of individual services or security tokens of individual companies.

“In the current situation, when crypto assets are not always accepted as payment for goods and services, the commissioner believes that crypto assets that cannot be converted directly into fiat currency on the exchange are not full-fledged“ money ”that can be considered a salary,” the statement says resolution of the department.

Recall that in 2017, the New Zealand Financial Regulatory and Supervision Authority equated cryptocurrencies with securities.

Earlier, a bill was introduced in the US Congress proposing to remove cryptocurrency operations from double taxation. In particular, the document provides for amendments to the Internal Revenue Code, according to which digital currencies will not be considered property.

It is worth noting that in July, the US Internal Revenue Service (IRS) sent letters to more than 10 thousand investors with a request to report on income from operations with cryptocurrency. It is known that the department is developing a new guide to cryptocurrencies.

In addition, recently the UK Internal Revenue Service sent letters to the cryptocurrency exchanges Coinbase, eToro and CEX.IO demanding to provide users with personal data and their transaction history. Nevertheless, representatives of CEX.IO emphasized that the request of the agency applies only to residents of the United Kingdom.

In the Canadian province of Ontario, meanwhile, a pilot project has been launched, under which residents will be able to pay property taxes with cryptocurrency.

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