This article outlines what triggers a taxable event and how to calculate the profit on cryptocurrency transactions. An individual taxpayer includes their profit for the financial year (1 April to 31 March) in their income tax return. The profit is…
Author: Tim Doyle
How much tax do I pay on my cryptocurrency profits?
Marginal Tax Rates An individual combines their cryptocurrency profits for the financial year (1 April to 31 March) and reports a single profit/loss amount to Inland Revenue (IRD) in their income tax return. The crypto profit is combined with their…
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Planning for Tax – Decisions to Consider
Cryptocurrency prices have increased significantly in 2020 and many clients have made money from their investments. Tax liabilities for the financial year ending 31 March 2021 are likely to follow; prepare now. Some clients will keep their profits invested in…
Safe Harbour Tax Overview
Cryptocurrency prices have recently increased significantly in value. This results in many clients currently having significant profits and subsequent tax liabilities. In some cases, IRD will charge interest at 7% pa on any underpaid tax. This article focuses on those…
Inland Revenue Requests Information from New Zealand Cryptocurrency Companies
You have likely received an email in the past month informing you that IRD has requested client information from NZ cryptocurrency retailers. This includes your personal details and purchase/sale history. All businesses in NZ (regardless of industry) are legally required…
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39% Marginal Tax Rate?
The Labour Party has announced that if re-elected, they would introduce a new marginal tax rate of 39% for an individual’s income over $180,000. The 39% tax rate would only apply to income over $180,000 and the remainder of an…
Cryptocurrency Purchased to Earn an Income – Part 2
This article is part 2 in our series about cryptocurrency purchased with the intention to earn an income stream. Read Part 1 here. In summary, there is a possibility that an increase or decreases in cryptocurrency values may be on…
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Cryptocurrency Purchased to Earn an Income – Part 1
This series of articles is about cryptocurrency purchased with the intention to earn an income stream. The IRD cryptocurrency update provides information about intention and purpose when acquiring cryptocurrency. For the first time, it makes specific reference to tokens that…
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IRD Cryptocurrency Update
IRD have made an overhaul to their cryptocurrency guidance. Their updated information can be found here. In summary, there are no significant changes or updates to the taxation of cryptocurrency, however the guidelines do provide some (but limited) clarity about…
Transferring Cryptocurrency Between Wallets or Exchanges
A transfer of a cryptocurrency token from one wallet to another, or from a wallet to an exchange (or vice versa) is not a taxable event. Before and after a transfer, the cryptocurrency token is owned (and controlled) by the…
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