Cryptocurrency

New Zealand Tax Authorities Give the Go Ahead for Crypto Payroll

crypto payroll

The crypto train has not yet stopped chugging along. More and more companies and countries are looking to get involved in the crypto sector, despite the hardships it has faced the past year. New Zealand just so happens to be the latest country, with reports coming out on Tuesday that said the sovereign island country will allow employers to pay their workers in cryptocurrency.

Here’s everything we know.

New Zealand Allows Employers to Pay Staff in Cryptocurrency

This month, New Zealand tax authorities published a ruling that featured a section giving guidance for companies that want to compensate their staff in cryptocurrency. Blockchain News reported this yesterday, August 13.

The guidance given by tax authorities included how to calculate PAYE taxes when paying in cryptocurrency, as well as highlighting that companies can use foreign exchanges when facilitating crypto payments.

“If the appropriate valuation cannot be obtained from a New Zealand-based exchange, an overseas-based exchange can be used,” the ruling said. “For some ‘altcoins’ (crypto-assets other than bitcoin) it may be necessary to convert into U.S. dollars or another fiat currency, and then convert into NZD.”

This is, of course, significant news as several countries remain anti-cryptocurrency. And New Zealand recognizes this, with the ruling calling New Zealand’s decision to allow crypto payroll “quite progressive.”

>> Ripple (XRP) Gains Regulatory Clarity in the UK: What’s Next?

Not the Only Ones

Despite the significance, and despite the countries that continue to have a hard stance on virtual currencies, New Zealand is not the only country to consider crypto payroll. As various reports noted, last year, CEO of Uphold Robin O’Connell discussed the opportunities using currencies like Bitcoin in payroll will bring.

“With money, people always want the same three things: faster, easier and more transparent,” O’Connell explained. “We think with Bitwage and Dash, we can continue to open that up for a lot more people all over the world.”

Takeaway

What do you think about New Zealand’s decision to allow crypto payroll? Let us know in the comments below.

Featured image: PixaBay

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