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.
‘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  and ) 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 –) 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.