New Zealand Tax Authority Targets Crypto Income

Summary:

New Zealand’s Inland Revenue Department (IRD) has announced that over 200,000 citizens failed to declare their cryptocurrency income on their tax returns. The IRD is intensifying efforts to ensure compliance, reminding citizens that digital assets are taxable. Updated guidelines from 2020 classify cryptocurrencies as property for tax purposes, making the income from trading and mining taxable.
The IRD has identified over 227,000 unique crypto users with more than 7 million transactions, valued at approximately NZD 7.8 billion (around $4.77 billion). The tax authority has sent letters to non-compliant taxpayers, urging them to declare their crypto earnings. IRD spokesperson Trevor Jeffries emphasized the importance of addressing tax obligations given the high market value of crypto assets.
The IRD is collaborating with both domestic and international exchanges and tax jurisdictions to gather data on crypto transactions and holdings. While New Zealand’s crypto regulations remain underdeveloped, there are calls for a more proactive regulatory approach to support the industry’s growth and ensure compliance.