The post Crypto Taxes: What New Zealand’s New Bill Proposal Means appeared on BitcoinEthereumNews.com.

On August 26, 2024, New Zealand’s Minister of Revenue, Simon Watts, introduced a new bill proposal into the House that could have major implications for the cryptocurrency ecosystem for the island nation.  OECD Crypto Reporting Framework To Be Implemented Titled Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures), the new bill seeks to give legislative effect to the Crypto-Asset Reporting Framework and Amendments to the Common Reporting Standard (CARF) developed by the Organisation for Economic Co-Operation and Development (OECD). The proposed amendments are slated to take effect on April 1, 2026, and require New Zealand-based reporting crypto-asset service providers (RCASPs), such as exchange platforms, to conform to new regulatory requirements. Such entities will have until July 30, 2027, to report all the relevant user information to New Zealand’s tax authority, Inland Revenue (IR). Specifically, exchanges must report their users’ personal information, such as their name, address, date of birth, and tax identification number. In addition, they will have to report the users’ aggregate level data on all relevant digital-asset transactions, crypto-to-fiat transactions, and transfers to digital assets to wallet addresses to ensure that profits are taxed accurately. Subsequently, the IR will share this information with all relevant tax authorities worldwide in cases where the information applies to users in other jurisdictions by September 30, 2027. The bill notes that currently, there is little oversight of digital asset transactions and income derived from profits through digital assets trading. It adds: On an international stage, there has been increased impetus to ensure that tax authorities retain visibility over income or investment earning opportunities that are facilitated for individuals through large-scale intermediaries. Repercussions Of Not Complying With Reporting Requirements The bill proposes new penalties for RCASPs that fail to comply with their crypto-asset transactions reporting obligations. For each instance of non-compliance,…

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Filed under: News - @ August 28, 2024 9:18 am