YEREVAN (CoinChapter.com) — New Zealand is introducing strict new reporting requirements for crypto service providers through a recently proposed tax bill. The new legislation is part of the country’s effort to align with global standards set by the Organisation for Economic Co-operation and Development (OECD).
New Zealand’s 2024-25 Tax Bill: Crypto Reporting and Tax Relief Measures
On August 26, New Zealand’s Minister of Revenue, Simon Watts, introduced the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Bill. This bill aims to confirm annual income tax rates, implement tax relief measures, and establish the OECD’s Crypto-Asset Reporting Framework (CARF). The bill also includes amendments to the Common Reporting Standard (CRS).
New Zealand’s New Tax Bill Overview – Ministry of Revenue. Source: Ministry of Revenue, New Zealand
Starting April 1, 2026, reporting crypto-asset service providers (RCASPs) in New Zealand must collect detailed information on their users. By June 30, 2027, they must submit this information to Inland Revenue, the country’s tax authority.
New Zealand’s Emergency Tax Relief Framework – Ministry of Revenue. Source: Ministry of Revenue, New Zealand
Global Crypto Data Exchange: New Zealand to Report User Transactions by 2027
Inland Revenue will share the collected data with relevant tax authorities worldwide if it involves users from other countries. This global exchange of information is expected to be completed by September 30, 2027. The framework aims to ensure tax authorities have visibility over income from crypto trading.
The bill addresses the need for international cooperation in monitoring income from crypto-related activities facilitated by large-scale intermediaries. Traders using New Zealand-based exchanges will have their transactions reported to the government, ensuring proper taxation.
New Zealand’s Crypto Compliance: Fines for Failing to Meet Reporting Standards
The bill outlines penalties for RCASPs that fail to comply with the CARF requirements. Noncompliance could result in a fine of 300 New Zealand dollars ($186) per instance, with a maximum penalty of 10,000 NZD ($6,200).
RCASPs will not be penalized if they can demonstrate that noncompliance was due to factors beyond their control. However, if they fail to take “reasonable care” to meet the requirements, they could face fines ranging from 20,000 to 100,000 NZD ($12,000 to $62,000).
Users who do not provide the necessary information for compliance may also face fines of up to 1,000 NZD ($621).
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