New Zealand Plans To Change Crypto Taxation

The New Zealand Inland Revenue Department (IRD) is proposing a new digital money taxation project. The goal of the project is to exempt cryptocurrencies from VAT and get rid of “unfair” double taxation.

The new taxation will apply to cryptocurrencies that function as securities or currencies. Currently, there is a need to create a detailed classification of all digital money in order to determine their purpose and functions.

The project says that the New Zealand crypto market is growing rapidly and that the proposed changes will be useful to most participants in the crypto market. Thus, the purpose of these changes is that the current tax legislation should not impede the growth of the crypto industry. The country's tax department believes that simple and clear tax laws can accelerate the development of the crypto market, ensuring that consumers and companies take part in crypto trading and at the same time their actions meet all regulation rules..

At this stage, the project is open to public comment. The country's tax department asks the public to give feedback on the proposed changes, and then consider next steps.

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