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New tax bill for cryptocurrency in nz
New tax bill for cryptocurrency in nz

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New Zealand introduces a new tax bill for cryptocurrency reporting compliance

New Zealand has introduced a new tax bill to regulate cryptocurrency, requiring service providers to report user data by 2027. Noncompliance could lead to significant fines, ensuring better oversight of crypto trading profits.

New Zealand has taken a significant step towards regulating cryptocurrency with the introduction of a new tax bill that aligns with the Organisation for Economic Co-operation and Development (OECD) crypto reporting framework. On August 26, Minister of Revenue Simon Watts presented the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Bill, which proposes the implementation of the OECD’s Crypto-Asset Reporting Framework (CARF) and updates to the Common Reporting Standard (CRS).

According to this bill, crypto-asset service providers (RCASPs) operating in New Zealand will be required to begin collecting information on reportable users of their platforms by April 1, 2026. To ensure accurate taxation of crypto trading profits, Inland Revenue must receive the collected data by June 30, 2027, and share it with relevant tax authorities globally by September 30, 2027.

The new regulations aim to provide tax authorities with better oversight of income generated from crypto assets, an area that has become increasingly challenging to monitor due to the digital nature of these transactions. The government stresses that this move is part of a broader international effort to maintain visibility over income and investments facilitated by large-scale intermediaries.

Failure to comply with these new reporting requirements will result in penalties for service providers. Noncompliance could lead to fines ranging from 20,000 to 100,000 New Zealand dollars ($12,000 to $62,000), depending on the severity of the breach. Each instance of noncompliance will result in a fine of 300 New Zealand dollars ($186), with a maximum penalty of 10,000 New Zealand dollars ($6,200). Additionally, users who fail to provide necessary information for compliance may face a 1,000 New Zealand dollar ($621) fine.

author avatar
Satpal S
Satpal is an Editor and Author at 4C Media Co, specializing in all stories and news related to crypto and finance.
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