How does cryptocurrency get taxed in New Zealand?

As cryptocurrency continues to become more mainstream, so does Inland Revenue’s focus on tax compliance in this area. If you have bought, sold, traded, or earned cryptoassets, it is important to understand how New Zealand’s tax rules apply and what Inland Revenue now expects from taxpayers. 
 

“You should treat cryptocurrency like any other asset when it comes to tax. Whether a gain is taxable depends on the type of activity you have engaged in and your specific situation. It’s a good idea to seek advice early and keep clear transaction records.” – Poppy Crawford, Tax Partner, BDO Wellington 

This applies to both individuals and businesses that invest in, accept, or reward staff/customers in cryptoassets. 
 

Treat cryptoassets like property, not currency 

Inland Revenue’s long‑standing position is that cryptoassets are a form of property, not money or legal tender. 

For tax purposes, existing income tax rules apply and there is no separate “crypto tax” regime in New Zealand. 
 

What has changed in 2026 and why this matters now 

In April, Inland Revenue publicly confirmed a significant step‑up in its compliance activity relating to cryptoassets. 

This increased visibility is being driven by improved data analytics and the introduction of the Crypto‑Asset Reporting Framework (CARF). Through CARF and international information sharing, Inland Revenue will receive information about cryptoasset activity, including on overseas platforms. 
 

“We’re seeing Inland Revenue take a much more proactive approach to cryptoasset compliance. For many taxpayers, a letter from Inland Revenue is a prompt to review the basics: What transactions you’ve made, what your intention was when you acquired the cryptoasset, and whether your filings match the activity. Getting on the front foot early is usually the most efficient way to manage cost and risk.”  

Inland Revenue has identified about 355,000 cryptoasset users in New Zealand who have undertaken about 57 million transactions valued at approximately $36 billion. 
 

When is crypto commonly taxable? 

While each situation depends on the facts, income tax commonly arises when you: 

• Sell cryptoassets for New Zealand dollars or another currency 
• Trade or swap one cryptoasset for another 
• Use cryptoassets to pay for goods or services 
• Earn cryptoassets through activities such as staking, lending, mining, or rewards 
• Receive cryptoassets as payment for services 

Tax can apply even if you never convert crypto back into cash. Inland Revenue expects each transaction to be valued in New Zealand dollars at the time it occurs. 
 

“Holding cryptoassets may not, on its own, trigger tax. However, if you are considering selling, exchanging or using or have already sold, exchanged, or used your cryproassets, the tax consequences need to be considered.”  

 

How Inland Revenue determines the tax outcome 

New Zealand does not have a broad capital gains tax, so whether a cryptoasset gain is taxable depends on why the cryptoasset was acquired and how it has been used. However, Inland Revenue’s default position is that most cryptoassets are acquired for the purpose of disposal, unless a person can show otherwise.

Inland Revenue looks at factors such as: 

• Your purpose or intention at the time you acquired the cryptoasset
• Whether there was a plan or scheme to make a profit 
• The frequency and volume of transactions 
• Whether your activity looks business‑like in nature 

 

“In New Zealand, the tax outcome often comes back to intention at acquisition and the overall pattern of behaviour. Frequent buying and selling, profit‑focused decision making, or activity that looks business‑like can all point Inland Revenue toward a taxable outcome. If you’re taking a position that disposals are not taxable, it’s important to be able to evidence that clearly.”  

 

Staking, rewards, airdrops, and other crypto activity 

• Staking and rewards: Cryptoassets earned through staking or similar arrangements are generally taxable as income when received, based on their New Zealand dollar value at that time. 
• Mining: Cryptoassets earned through mining can be taxable, and larger or more organised mining activity may be treated as a business. 
• Airdrops and forks: Whether cryptoassets received through airdrops or hard forks are taxable depends on the circumstances, including whether they are linked to services provided or a profit‑making activity. 
• Being paid in crypto: If you receive cryptoassets as payment for goods or services, the value received is taxable income, just as if you had been paid in cash. 

These activities can create multiple taxable events, sometimes in quick succession, making record‑keeping essential. 
 

GST and cryptoassets: The quick answers 

Cryptoassets themselves are excluded from GST, so buying or selling cryptoassets does not, on its own, require GST registration. 

However, GST can still be relevant in some situations: 

• If you are GST‑registered and receive cryptoassets as payment for goods or services, GST still applies to the underlying supply. 
• NFTs can have GST implications, particularly where NFTs are created and sold to New Zealand customers. 
• Mining services can also have GST consequences, including potential zero‑rating where services relate to offshore blockchains. 

Income tax can still apply even where GST does not. 
 

Business checklist: what to do now 

If your business holds cryptoassets, accepts crypto as payment, or uses crypto to reward staff or customers, consider the following practical steps to reduce risk and avoid surprises at tax time: 

• Map your crypto touchpoints: Identify where cryptoassets are used across the business and who owns each process. 
• Confirm tax “intention” and governance: Document why the business acquired/holds cryptoassets, how decisions are made, and what would trigger a disposal (this can be important evidence if questioned later). 
• Set a valuation and reporting method: Decide how you will determine NZD values at transaction time (exchange rates, time-of-day cut-offs, source hierarchy) and apply it consistently. 
• Strengthen records and system capture: Regularly export exchange histories, retain wallet addresses and on-chain records, and ensure you can reconcile to bank statements and the general ledger. 
• Review income tax and GST touchpoints: Check whether any activity could be revenue account (trading-like patterns), whether staking/mining/rewards create income, and whether GST applies to the underlying goods/services where crypto is the payment method. 
• Consider payroll and withholding obligations: If paying employees or contractors in crypto, ensure you can meet PAYE/withholding and reporting requirements based on NZD values at payment time. 
• Get ahead of corrections: If you have prior-year activity, assess whether any returns need updating and consider a voluntary disclosure approach where appropriate. 

 

Record‑keeping is critical 

Inland Revenue expects taxpayers to keep accurate and complete records of their cryptoasset activity. This includes: 

• Dates of transactions 
• The nature of each transaction 
• New Zealand dollar value at the time of the transaction 
• Wallet addresses, exchange records, and bank statements 
• Total holdings at the start and end of each tax year 

Records generally need to be kept for at least seven years, and it is sensible to download transaction histories regularly as exchanges may not retain data indefinitely. 

Good records can be the difference between a manageable compliance exercise and a costly dispute. 
 

Filing and correcting your tax position 

If you have taxable income from cryptoasset disposals or crypto earned as income, Inland Revenue expects you to return it in the relevant income tax return. 

Inland Revenue has indicated the letters it is sending are intended to give taxpayers an opportunity to review their position and correct errors before further action is taken. Addressing issues early can significantly reduce penalties and interest. 
 

What to watch out for in the future?

The tax treatment of cryptoassets continues to evolve. Inland Revenue is currently considering whether certain cryptoassets with debt-like characteristics, including some staking and yield-bearing arrangements, should be brought within New Zealand's financial arrangement rules. If implemented, this could change how income and gains from these assets are recognised and taxed. Investors involved in staking, lending, or other crypto yield-generating activities should keep a close eye on future developments in this area. 
 

How BDO can help 

Crypto tax issues are rarely straightforward, particularly where activity spans multiple years, platforms, or jurisdictions. We regularly help clients with: 

• Reviewing cryptoasset activity and tax exposure 
• Determining whether income is taxable and how it should be returned 
• Assisting with voluntary disclosures and corrections 
• Advising businesses that hold or transact in cryptoassets 

If you are unsure how the rules apply to your situation, or if you are concerned about Inland Revenue’s increased focus in this area, speaking with an adviser early can help you manage risk and plan with confidence.