New Zealand Seeks Feedback on Cryptocurrency Taxation

May 4, 2021, 4:15 PM

The New Zealand tax authority is seeking comments on the income tax treatment of cryptocurrency generated through “hard forks” or “air drops.”

Both consultations launched Tuesday address several questions to stakeholders and ask them to submit their comments by May 25.

  • The consultation on hard forks discusses whether the receipt or disposal of cryptoassets received from hard forks are taxable and whether any deductions are available in certain circumstances.
  • A hard fork is when there is a radical change to how the cryptocurrency functions, which requires the creation of a brand new cryptocurrency that will exist alongside the original. Holders...

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