The Tax Administration of New Zealand may refuse to apply tax to cryptocurrencies on goods and services.
The document indicates the rapid development of the crypto sector. At the same time, digital assets cannot be unambiguously called an investment product, which makes it difficult to apply the current tax legislation to them.
Currently, in the country cryptocoins and tokens fall under the category of “property” and are taxed at 15% when transferring assets. Later, users also deduct income taxes. The tax office intends to waive the tax on goods and services in relation to assets used as securities or currencies.
At the same time, they will leave income tax in relation to digital assets.
The agency will accept comments regarding the initiative until April 9.
Recall that last year the Internal Revenue Service recognized the receipt of income in crypto by employees as legal and published a guide to its taxation.
Also recall, that recently a bill defining the legal status of mining and the features of its taxation has been sent to the presidential administration of Kazakhstan for consideration. You can read more about this in our article.