New Zealand citizens can receive their salary in Bitcoin from September 1st. Tax authorities have explained this in a recently published document.
New Zealand as a model
Many authorities are still working on their position on cryptocurrencies. While some states choose to ban Bitcoin and Co., other countries see this technology as an opportunity to become the industry leader in cryptography. However, the legal problems related to cryptocurrency are unclear in most countries. New Zealand is now taking a step forward in a new direction.
Crypto-currencies are legal
The statement from the tax authorities of New Zealand indicates that cryptocurrencies are legal. This means that employees can receive their salary in digital parts as of September 1st.
This decision of the New Zealand Treasury was taken Wednesday, August 7. Section 91D of the 1994 Tax Administration Act clearly defines what the new regulation provides: Employers can pay wages in crypto. It also indicates how this should be taxed.
Requirements for Bitcoin Content
There are certain requirements for Bitcoin content listed. For example, one condition is that the encrypted payment is part of the normal salary. It must also act of a fixed amount. This means that other payments such as bonuses do not fall under this rule and therefore can not be paid with crypto. In addition, the self-employed are not included in the clause.
Change to New Zealand dollar
Another important aspect is that digital coins must be currencies that can be traded directly with government currencies on a stock exchange.
"In the current environment where cryptocurrencies are not immediately accepted as a means of payment for goods and services, the auditor believes that cryptocurrencies that can not be converted directly into a system of Fiat exchange are not enough "monetary", be considered a salary or a reward. "
Although some of the decisions in the new clause still leave unanswered questions, this action in New Zealand is a step in the right direction. Legal clarity and an open attitude towards digital currencies must be welcomed.
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Corinna is the editor-in-chief of Coinwelt. Since 2016, his world is based around crypto-currencies and blockchain. No day goes by without Corinna being bored for not investing in Bitcoin the first day. She finds the international legal situation particularly interesting for currencies such as Bitcoin. For the future, she hopes for a positive attitude from lawmakers and clear laws on the treatment of digital parts.