Why New Zealand Crypto Investors Need Specialist Tax Accountants
In New Zealand, crypto and NFTs are no longer some fringe assets. This is because with the increasing scrutiny by IRD on digital asset activity, investors and traders are realizing that casual record-keeping and generic tax advice are risky. Crypto transactions trigger tax obligations more frequently than anyone can expect, and making mistakes can be significantly costly. As a result, specialized crypto accounting becomes less of a luxury and more of a necessity. How Crypto is Taxed in New Zealand For tax purposes, crypto is not treated as a separate asset class in New Zealand. Instead, most crypto activity is taxed under income tax rules rather than capital gains tax. The creation of any taxable events can occur due to the sale of crypto, swapping of tokens, spending of crypto, receiving of staking rewards, and others. In addition to this, even trading between two cryptocurrencies can trigger income tax. An accurate valuation during the time of a transaction is very importa...