New Zealand has set the precedent of being one of the initial nations to allow cryptocurrency salaries. Workers will receive their payments in the form of digital assets. This information was availed by the New Zealand Inland Revenue Department, the Nation’s Tax regulator.
Realistically, cryptocurrency regulation has faced stringent measures in numerous jurisdictions. This has been prompted by dissenting views based on how it should be allowed or tackled. From September 2019, New Zealand seeks to be a formidable force after it gave the green light that employees’ salaries can be received in the form of digital currencies.
New Zealand Propels Cryptocurrency Adoption
Different proposals have been presented on how cryptocurrency usage can be boosted. New Zealand has stepped a notch higher by allowing salaries to be remitted in the form of cryptocurrencies. As a result, it has acknowledged digital currencies as incredible legal assets.
According to the New Zealand Inland Revenue Department, tax provisions will apply in the cryptocurrency remunerations. They also comprise of commissions and service payments among others enjoyed by workers. As a result, the Pay as You Earn (PAYE) system would be incorporated into cryptocurrency salaries.
New Zealand’s Crypto Proposals
The tax information bulletin released asserted that crypto payments were only applicable to an employee’s regular salary. Nevertheless, equities or shares were not pertinent.
Additionally, cryptocurrency remunerations could only happen to salary earners as compared to self-employed persons.
New Zealand seeks to undertake significant attempts for taxation and regulation to prevail in the crypto sector. This nation has shown its novelty through the cryptocurrency salary approach.