Now New Zealanders Can Withdraw Salaries In Cryptocuurencies
New Zealand has become the first country to legalize cryptocurrency salaries. The country's tax agency ruled salaries and wages may be paid in cryptocurrencies. Read Story on Adrypto
According to the Financial Times report, New Zealand has become the first country to legalize cryptocurrency salaries as the country's tax agency ruled salaries and wages may be paid in cryptocurrencies so long as the preferred digital coin is pegged to at least one standard, or fiat, currency.
The ruling by New Zealand’s tax authority allows salaries and wages to be paid in cryptocurrencies such as bitcoin from September 1, as long as the payments are in regular, fixed amounts. The digital currency of choice must also be pegged to at least one regular currency and must be able to be converted directly into a standard form of payment.
This makes New Zealand the first country to legally support payment in crypto. There are, however, some stipulations: In a bulletin dated Aug. 7, New Zealand’s Inland Revenue excluded self-employed taxpayers from earning incomes in cryptocurrencies, and added that some companies that choose to pay their employees in bitcoin or other crypto will be able to withhold tax under New Zealand’s ‘pay as you earn’ income tax scheme.
Though NZ’s tax authorities don’t consider crypto money, they did note that crypto has many of the same features as money.
"Wellington’s Inland Revenue defined crypto assets as property, noting that crypto assets are not defined as “money” anywhere, and therefore are not legal tender. However, the authority will tax crypto-salaries as money because “some cryptoassets have many of the characteristics of money; for example, being . . . divisible . . . and hard to counterfeit.”
New Zealand’s decision also follows Facebook’s introduction of its ‘Libra” ‘stablecoin’, which Facebook intends to use to facilitated transnational payments.
Thomas Hulme, a solicitor at London-based law firm, Mackrell Turner Garrett, said the landmark decision is “another step towards governments recognizing that actually people are wanting to be paid in crypto.”
“Some people would rather deal with their wealth in that medium.”
Though he added that accepting payment in crypto is “a bit crazy.”
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