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New Zealand May Drop "Unfavorable" Goods And Services Tax On Cryptocurrencies
Summary: New Zealand's tax authority is contemplating a change to it treatment of cryptocurrencies, which would involve dropping the current and controversial application of goods and services tax (GST). Under current rules digital currencies are treated like a property, which means that every time a cryptocurrency changes hands it faces a 15 percent GST, and potentially ...
New Zealand's tax authority is contemplating a change to it treatment of cryptocurrencies, which would involve dropping the current and controversial application of goods and services tax (GST).
Under current rules digital currencies are treated like a property, which means that every time a cryptocurrency changes hands it faces a 15 percent GST, and potentially can be double taxed when income tax is later applied.
The New Zealand Inland Revenue Department (IRD) released a policy issue paper, which called the current situation “unfavorable” and suggested that they do away with the GST liability but keep the treatment for income tax.
By Ramsey Baker
Tags: Cryptocurrency,GST,IRD,New Zealand,Tax
Link: New Zealand May Drop "Unfavorable" Goods And Services Tax On Cryptocurrencies [Copy]
