A GUIDE ON TAX FOR CRYPTOASSETS IN NEW ZEALAND

Cryptoassets have taken the world by storm, with more people looking to acquire this digital form of property.

Whether you’re trading, investing, mining, or using crypto for transactions, taxation applies for certain circumstances.

Here’s what New Zealand taxation laws have to say about cryptoassets.

How Crypto Is Taxed in NZ

In New Zealand, cryptoassets are treated as property, not currency, meaning they are subject to tax just like other forms of investment. The Inland Revenue Department (IRD) requires individuals and businesses to report income or gains from crypto-related activities.

Buying & Holding: If you purchase crypto and hold it without selling, no tax applies.
Selling & Trading: Profits from selling, exchanging, or converting crypto into fiat or another cryptocurrency are taxable.
Mining & Staking Rewards: Income earned from mining or staking is taxable at market value upon receipt.
Crypto as Payment: If you receive crypto for goods or services, it is treated as taxable income.

Key Tax Considerations

Capital Gains vs. Income Tax: If you acquire crypto with the intention of selling for profit, the gains are subject to income tax rather than capital gains tax.
Record-Keeping: The IRD advises keeping records of transactions, including dates, values in NZD, and wallet addresses.
GST Rules: Cryptoassets are not subject to Goods and Services Tax (GST) when purchased or sold unless cryptoassets are used as a form of payment for business transactions.

Learn More

You can learn more about cryptoassets and how they are taxed through the IRD website:

Taxing cryptoasset income – IRD

Need Help with Accounting? We’re Here for You!

With evolving regulations, staying informed is key. Consulting us at DAD Accountant or using crypto tax software can help you track and report earnings correctly. Whether you’re an investor or a casual user, understanding these tax rules ensures a smooth and legal crypto journey in New Zealand.

If you have any uncertainties, we would be happy to assist you at DAD Accountant with any specific questions you may have.

March 28, 2025