{"id":1104,"date":"2019-05-26T18:24:32","date_gmt":"2019-05-26T18:24:32","guid":{"rendered":"http:\/\/bitcoin.tax\/podcasts\/?page_id=1104"},"modified":"2024-08-08T14:08:39","modified_gmt":"2024-08-08T22:08:39","slug":"new-zealand-cryptocurrency-taxation","status":"publish","type":"post","link":"https:\/\/bitcoin.tax\/podcasts\/new-zealand-cryptocurrency-taxation\/","title":{"rendered":"New Zealand Cryptocurrency Taxation"},"content":{"rendered":"<audio class=\"wp-audio-shortcode\" id=\"audio-1104-1\" preload=\"none\" style=\"width: 100%;\" controls=\"controls\"><source type=\"audio\/mpeg\" src=\"https:\/\/bitcoin.tax\/podcasts\/podcast-player\/1104\/new-zealand-cryptocurrency-taxation.mp3?_=1\" \/><a href=\"https:\/\/bitcoin.tax\/podcasts\/podcast-player\/1104\/new-zealand-cryptocurrency-taxation.mp3\">https:\/\/bitcoin.tax\/podcasts\/podcast-player\/1104\/new-zealand-cryptocurrency-taxation.mp3<\/a><\/audio><div class=\"podcast_meta\"><aside><p><a href=\"https:\/\/bitcoin.tax\/podcasts\/podcast-download\/1104\/new-zealand-cryptocurrency-taxation.mp3?ref=download\" title=\"New Zealand Cryptocurrency Taxation \" class=\"podcast-meta-download\">Download file<\/a> | <span class=\"podcast-meta-duration\">Duration: 35:39<\/span> | <span class=\"podcast-meta-date\">Recorded on May 26, 2019<\/span><\/p><\/aside><\/div>\n<p>Tim Doyle, a Chartered Accountant, joins us to discuss how cryptocurrency taxation is handled in New Zealand. Tim&#8217;s been an accountant for over 10 years, and has honed his focus to cryptocurrency taxation for the past couple years. Tim shares some excellent information that will be useful to any New Zealand crypto enthusiast, and sheds some light on the global differences of crypto taxation.<\/p>\n<p>If you are a crypto trader in New Zealand, you&#8217;ll definitely want to tune in! Be sure to check out our guide to crypto taxation in New Zealand below.<\/p>\n<h4>Guest<\/h4>\n<p><em>Tim Doyle<\/em><\/p>\n<p><span style=\"font-weight: 400;\">Twitter: <a href=\"https:\/\/twitter.com\/TimDoyle01\" target=\"_blank\" rel=\"noopener\">@TimDoyle01<\/a><\/span><\/p>\n<p><a href=\"https:\/\/www.linkedin.com\/in\/timbdoyle\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">LinkedIn<\/span><\/a><\/p>\n<h4>More Information<\/h4>\n<p><a href=\"https:\/\/www.agbizaccountants.nz\/\" target=\"_blank\" rel=\"noopener noreferrer\">AG Biz Accountants<\/a><\/p>\n<h2>New Zealand Cryptocurrency Taxation<\/h2>\n<div class=\"et_pb_module et_pb_text et_pb_text_3 et_pb_bg_layout_light  et_pb_text_align_left\">\n<div class=\"et_pb_text_inner\">\n<p><span style=\"font-weight: 400;\">With the increased popularity of cryptocurrency, countries have begun to create tax laws specifically targeted at crypto transactions. New Zealand has followed suit and has aligned with many other countries\u2019 suggestions for taxing crypto, including the characterization of cryptocurrency and what constitutes a taxable event. New Zealand is unique in that the Inland Revenue Department (IRD) generally <\/span><a href=\"https:\/\/www.newzealandnow.govt.nz\/living-in-nz\/money-tax\/nz-tax-system\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">does not have a capital gains tax<\/span><\/a><span style=\"font-weight: 400;\">. This article will explore how New Zealand\u2019s IRD views cryptocurrency and how cryptocurrencies are taxed. Be sure to listen in to the interview above with Tim Doyle for a more detailed explanation of New Zealand cryptocurrency taxation!<\/span><\/p>\n<p><strong>Classification <\/strong><\/p>\n<p><span style=\"font-weight: 400;\">The New Zealand IRD currently classifies cryptocurrency as property that exists virtually. As such, cryptocurrency should be treated as property for taxation purposes. An important classification to note is mining. Mining crypto is considered a business and the proceeds are taxable as income, however the expenses incurred from purchasing equipment can be deducted. <\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Calculation:<\/strong> Income Tax on (Proceed)\u200a\u2014\u200a(Cost Basis)<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><i><span style=\"font-weight: 400;\">Proceed<\/span><\/i><span style=\"font-weight: 400;\"> refers to how much your coin was worth at the time of it\u2019s sale.<\/span><\/li>\n<li style=\"font-weight: 400;\"><i><span style=\"font-weight: 400;\">Cost Basis<\/span><\/i><span style=\"font-weight: 400;\"> refers to how much your coin cost to acquire.<\/span><\/li>\n<\/ul>\n<p><i><span style=\"font-weight: 400;\">Example: If you purchase 1 BTC for $10,000 NZD (your cost basis) and sell it for $15,000 NZD (proceed), $5,000 NZD would be subject to income tax ($15,000\u200a\u2014\u200a$10,000).<\/span><\/i><\/p>\n<p><strong>Important dates<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">New Zealand\u2019s tax year runs from 1 April to 31 March. 7 July is the due date for individuals filing without a tax accountant, with individuals filing with an accountant having until 31 March to file.<\/span><\/p>\n<p><strong>Taxation<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">New Zealand does not usually have capital gains tax, occuring only in rare instances. The IRD has two primary types of taxation methods: income and goods and services tax (GST). Currently all New Zealanders must pay income ta<\/span><span style=\"font-weight: 400;\">x on cryptocurrency proceeds because they are considered taxable events<\/span><span style=\"font-weight: 400;\">. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The tax an individual pays on crypto depends on their individual income <\/span><a href=\"https:\/\/www.ird.govt.nz\/topics\/income-tax\/tax-codes-and-tax-rates\/tax-rates-for-individuals\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">tax rate<\/span><\/a><span style=\"font-weight: 400;\">. If an individual has made income from crypto, an IR3 form needs to be filled out and most individuals will need to request a change to an <\/span><a href=\"https:\/\/www.classic.ird.govt.nz\/online-services\/keyword\/income-tax\/online-ir3-taxpack-request.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">IR3 filer<\/span><\/a><span style=\"font-weight: 400;\">. It remains unclear whether or not the GST act applies to crypto. <\/span><\/p>\n<p><strong>Taxable events<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Any type of cryptocurrency transaction that results a tax liability is considered to be a taxable event. As noted previously, mining cryptocurrency is considered a profitable event and is classified as a business. All proceeds are taxable, with equipment costs serving as deductions. <\/span><\/p>\n<p><em><span style=\"font-weight: 400;\">Common taxable events:<\/span><\/em><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><em><span style=\"font-weight: 400;\">Buying and selling crypto <\/span><\/em><\/li>\n<li style=\"font-weight: 400;\"><em><span style=\"font-weight: 400;\">Trading crypto for crypto <\/span><\/em><\/li>\n<li style=\"font-weight: 400;\"><em><span style=\"font-weight: 400;\">Buy crypto and then using crypto to buy other goods and services (also could potentially result in a double tax)<\/span><\/em><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Buying and holding crypto is not a tax event.<\/span><\/p>\n<p><strong>GST Act<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">The goods and services act imposes a 15% tax on goods and services on imported goods. New Zealand law remains unclear about whether the GST Act should be applied to cryptocurrency due to crypto\u2019s non-physical nature. For now, owners of crypto should keep detailed records of their trading activity as the IRD are currently reviewing the applicableness of the GST Act on cryptocurrency. <\/span><\/p>\n<p><strong>Additional Resources:<\/strong><\/p>\n<p><a href=\"https:\/\/www.newzealandnow.govt.nz\/living-in-nz\/money-tax\/nz-tax-system\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">https:\/\/www.newzealandnow.govt.nz\/living-in-nz\/money-tax\/nz-tax-system<\/span><\/a><\/p>\n<p><a href=\"http:\/\/www.legislation.govt.nz\/act\/public\/1985\/0141\/143.0\/DLM82299.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">http:\/\/www.legislation.govt.nz\/act\/public\/1985\/0141\/143.0\/DLM82299.html<\/span><\/a><\/p>\n<\/div>\n<\/div>\n<h3>Listen<\/h3>\n<p><a href=\"https:\/\/podcasts.apple.com\/us\/podcast\/the-bitcointaxes-podcast\/id1472061044\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2211 alignnone size-full\" src=\"https:\/\/bitcoin.tax\/podcasts\/wp-content\/uploads\/2020\/04\/US_UK_Apple_Podcasts_Listen_Badge_CMYK-1.png\" alt=\"\" width=\"166\" height=\"40\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tim Doyle, a Chartered Accountant, joins us to discuss how cryptocurrency taxation is handled in New Zealand. Tim&#8217;s been an accountant for over 10 years, and has honed his focus to cryptocurrency taxation for the past couple years. Tim shares some excellent information that will be useful to any New Zealand crypto enthusiast, and sheds [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1875,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"episode_type":"audio","audio_file":"https:\/\/dyk972he7tjqu.cloudfront.net\/crypto-tax-new-zealand-tim-doyle.mp3","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"35:39","filesize":"48.97M","filesize_raw":"51349461","date_recorded":"2019-05-26 18:24:32","explicit":"","block":"","footnotes":""},"categories":[1],"tags":[],"series":[15],"class_list":["post-1104","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","series-the-bitcointaxes-podcast"],"episode_featured_image":"https:\/\/bitcoin.tax\/podcasts\/wp-content\/uploads\/2020\/02\/The-BitcoinTaxes-Podcast-Twitter-Card_Featured-Image.png","episode_player_image":"https:\/\/bitcoin.tax\/podcasts\/wp-content\/uploads\/2024\/08\/bitcointaxespodcastimage-150x150-1.jpg","download_link":"https:\/\/bitcoin.tax\/podcasts\/podcast-download\/1104\/new-zealand-cryptocurrency-taxation.mp3","player_link":"https:\/\/bitcoin.tax\/podcasts\/podcast-player\/1104\/new-zealand-cryptocurrency-taxation.mp3","audio_player":"<audio class=\"wp-audio-shortcode\" id=\"audio-1104-2\" preload=\"none\" style=\"width: 100%;\" controls=\"controls\"><source type=\"audio\/mpeg\" src=\"https:\/\/bitcoin.tax\/podcasts\/podcast-player\/1104\/new-zealand-cryptocurrency-taxation.mp3?_=2\" \/><a href=\"https:\/\/bitcoin.tax\/podcasts\/podcast-player\/1104\/new-zealand-cryptocurrency-taxation.mp3\">https:\/\/bitcoin.tax\/podcasts\/podcast-player\/1104\/new-zealand-cryptocurrency-taxation.mp3<\/a><\/audio>","episode_data":{"playerMode":"dark","subscribeUrls":{"apple_podcasts":{"key":"apple_podcasts","url":"","label":"Apple Podcasts","class":"apple_podcasts","icon":"apple-podcasts.png"},"google_podcasts":{"key":"google_podcasts","url":"","label":"Google Podcasts","class":"google_podcasts","icon":"google-podcasts.png"},"rss":{"key":"rss","url":"","label":"RSS","class":"rss","icon":"rss.png"},"spotify":{"key":"spotify","url":"","label":"Spotify","class":"spotify","icon":"spotify.png"},"stitcher":{"key":"stitcher","url":"","label":"Stitcher","class":"stitcher","icon":"stitcher.png"}},"rssFeedUrl":"https:\/\/bitcoin.tax\/podcasts\/feed\/podcast\/the-bitcointaxes-podcast","embedCode":"<blockquote class=\"wp-embedded-content\" data-secret=\"KIRYR4m7VU\"><a href=\"https:\/\/bitcoin.tax\/podcasts\/new-zealand-cryptocurrency-taxation\/\">New Zealand Cryptocurrency Taxation<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/bitcoin.tax\/podcasts\/new-zealand-cryptocurrency-taxation\/embed\/#?secret=KIRYR4m7VU\" width=\"500\" height=\"350\" title=\"&#8220;New Zealand Cryptocurrency Taxation&#8221; &#8212; BitcoinTaxes Podcasts\" data-secret=\"KIRYR4m7VU\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script>\n\/*! 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