Receiving income in Bitcoin and other cryptocurrencies is legal and taxable as well, according to New Zealand's tax authorities, Cointelegraph reports on August 12th.
According to the new guidelines published by the Inland Revenue Department, cryptocurrencies must be used in "money-like" fashion in order to be taxed. This means it has to be paid as a salary or part of the compensation in a predetermined amount as well as being lockup-free, with the option of being converted into fiat money right away.
Clarifying, the tax authority commented “In the current environment where crypto-assets are not readily accepted as payment for goods and services, the Commissioner’s view is that crypto-assets that cannot be converted directly into fiat currency on an exchange [...] are not sufficiently “money-like” to be considered salary or wages.”
Since the recent FATF call for regulation, we've seen a number of countries already passing its regulation, mostly focusing on anti money laundering and KYC regulation of exchanges. However, in this case we see crypto becoming accepted as a means of payment, with the tax dues to follow. It is a great step forward as it legalizes salaries to be paid out in cryptocurrency, and that is one of the main obstacles into the mainstream adoption of crypto. With cryptocurrencies becoming readily available in the form of wages, an increase in the service industry allowing the exchange and spending of the said wages is to be expected, to the benefit of New Zealand's economy.