0
📰 News
311 views

New Zealand Officially Makes BTC and Other Crypto Salaries Legal, Subject to Taxation

  • Yuri Molchan
    📰 News

    Authorities of New Zealand have decided that getting wages in Bitcoin and other crypto is legitimate and should be taxed similar to regular fiat salaries

New Zealand Officially Makes BTC and Other Crypto Salaries Legal, Subject to Taxation
Contents

A while ago New Zealand’s regulators published a tax information bulletin. In it, the NZ Inland Revenue Department provides details on the rules under which salaries in crypto are going to be made legal with respective taxation.

The public ruling for that is going to be valid for three years, starting on September 1.

Not for self-employed

As per the document, the tax guidance on crypto salaries taxation applies only to full and part-time employees who are not self-employed. Under the new ruling, crypto payments can be only a part of a regular fiat salary or wage.

Those people can receive crypto as remuneration, commissions, etc.

👉MUST READ

SunNetwork Is Live Officially, Tron’s Capacity Will Improve, Promises Justin Sun

SunNetwork Is Live Officially, Tron’s Capacity Will Improve, Promises Justin Sun

‘Money-like’ crypto assets

One of the terms that allows a salary in cryptocurrencies to be subject to taxation is that this crypto must not have a lock-up period and it must have an option of converting into fiat money.

In the current environment where crypto-assets are not readily accepted as payment for goods and services, the Commissioner’s view is that crypto-assets that cannot be converted directly into fiat currency on an exchange (that meets the requirements set out in [57] and [59]) are not sufficiently “money-like” to be considered salary or wages.

Further on, ‘money-like’ digital assets are explained as coins that work as a P2P system of payments and not those assets that have a function of securities.

Some crypto-assets are designed to function as an alternative to fiat currency in the sense they provide a general-purpose peer-to-peer payment system. Examples are bitcoin, bitcoin Cash (BCH), bitcoin Gold (BTG), and Litecoin (LTC). Some crypto-assets are designed with other functions in addition to use as a currency, but the currency purpose is still a significant one. Ether is a common example of this. The Commissioner’s view is that payment in these types of cryptoassets (where conversion directly into a fiat currency on an exchange is possible) is sufficiently “money-like” to come within the ordinary meaning of salary or wages.

The document says that salaries can also be paid out in stablecoins.

This refers to so-called “stablecoins” that have their value pegged to one or more fiat currencies. Common examples are USD Tether (USDT) and Paxos Standard (PAX). Regardless of whether these crypto-assets are designed to function like currencies (in the sense discussed above at [47]–[50]) the Commissioner’s view is that payment in a stablecoin (where conversion directly into a fiat currency on an exchange is possible) is sufficiently “money-like” to come within the ordinary meaning of salary or wages.

Cover image via news.u.today
Subscribe to https://news.u.today/ on Facebook, and get involved in all top daily cryptocurrency news, stories and price predictions!

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

👓 Recommended articles
0
📰 News
1 view

Ripple-Backed Coil Startup and Mozilla Launch $100 Mln Fund to Let Content Makers Earn

  • Yuri Molchan
    📰 News

    Coil startup founded by a former Ripple CTO joins forces with Mozilla, Creative Commons to set up a $100-mln fund that would allow content makers to monetize their content and users to directly encourage web authors they like

Ripple-Backed Coil Startup and Mozilla Launch $100 Mln Fund to Let Content Makers Earn
Contents

As reported by Prenewswire and Coil itself on its official Twitter page, the Ripple-supported startup founded by a former Ripple CTO Stefan Thomas has partnered with such major companies as Mozilla and Creative Commons.

Together they are launching a fund that would provide a $100-mln grant to let content makers earn money on what they produce for various platforms on the Web. Users will also be able to support content valuable for them with cash - something which has not been technically possible to be done directly on platforms since the appearance of the Internet.

Heading for the decentralized Internet

The new fund will be dubbed Grant for the Web. It is going to tackle some crucial issues regarding user privacy and their personal data, fake news spreading, etc. The fund will be working as part of the broader Web Monetization initiative.

The grant of $100 mln will enable developers and content makers to introduce new standards and alternative business models that would let benefit both makers and consumers of online content. The fund will encourage independent creators and help increase inclusion.

The money for the grant will be totally provided by Coil with contributors from Creative Commons and Mozilla helping to implement the initiative. The startup also welcomes those who want to join in and assist in this project.

As per reps of the fund, Coil has developed an add-on for Mozilla Firefox and a desktop extension for Google Chrome (since Firefox uses the Google search engine by default). They also mentioned that in the future collaborations will be struck with other web browsers to get them to participate in the Web Monetization.

As reported by U.Today earlier, recently Ripple took part in an investment round of Coil and also supported the startup with a 1-mln XRP grant.

👉MUST READ

Crypto Crime: 21-Year-Old Australian Woman Faces 53 Charges for Laundering Stolen Funds with Cryptocurrency

Crypto Crime: 21-Year-Old Australian Woman Faces 53 Charges for Laundering Stolen Funds with Cryptocurrency

The community’s reaction to the news

Some in the community are curious how long it will take to see the first results, like will it be five years or faster, longer.

Grant for the Web replied that the fund is going to run for more than five years. Numerous grants, rewards and initiatives are planned over that period with results to be shared with the community.

Cover image via www.123rf.com
In this Telegram channel you’ll find fresh news, interviews, infographics, forecasts & other helpful stuff. Join U.Today's channel.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

👓 Recommended articles

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings