New Zealand allows salary payments with Bitcoin | BTC-ECHO
The New Zealand Tax Administration released a money laundering bill on 7 August with new regulations on salary payments in digital currencies. It states that cryptocurrencies are officially allowed, allowing companies to pay their employees in Bitcoin and Co. The regulation will enter into force on 1 September 2019.
Section 91D of the Tax Administration Act also explains how to handle taxpayers' cash payments in Australia. Using the PAYE ("pay as you earn") framework, companies can then tax their crypto payments officially.
New Zealand is looking forward in terms of crypto
The New Zealand authorities claim that the cryptocurrencies used are directly convertible into conventional forms of payment.
The document states:
"In the current environment, crypto assets are still not widely accepted as payment for goods and services. Therefore, legislators believe that crypto-assets that are not exchangeable directly into Fiat money through a stock exchange are not "money-like" enough to qualify as wages or salaries. "
In addition, bonuses, gratuities, and commissions are not covered by the scheme. Payments must be part of a fixed wage rate. Accordingly, the document excludes payments to shareholders of public limited companies. Likewise, self-employed are excluded from the new rules.
New Zealand is taking a big step towards crypto adaptation with the new regulations. So far, most states have not dared to adopt such a progressive scheme for digital currency concepts. On the contrary, the trend tends to be repressive in some countries. The reason for this is above all that Bitcoin and Co. are regarded as volatile, ie strongly fluctuating, currencies. In addition, Bitcoin and Co. may attack established financial structures and may question the power monopoly of the state banking system.
Furthermore, cryptocurrencies with their pseudonymous or anonymous nature feed the regulators' concerns about money laundering. It may take a while for countries like Germany to adopt as advanced crypto laws as New Zealand.
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