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New Zealand has introduced a new tax bill incorporating the OECD’s crypto reporting framework.
The country’s Minister of Revenue has put forward a proposal to adopt the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF) through a new legislative measure. This bill, titled “Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures),” was presented by Minister Simon Watts on August 26.
The proposed bill outlines the annual income tax rates and introduces provisions for tax relief. It also aims to implement the OECD’s CARF and make amendments to the Common Reporting Standard (CRS).
New Zealand’s Reporting Obligations for Crypto Service Providers
With these changes, crypto-asset service providers (RCASPs) in New Zealand will be required to start gathering information on users who are subject to reporting, starting from April 1, 2026. This data must be submitted to Inland Revenue by June 30, 2027.
Additionally, if the collected information concerns users from other jurisdictions, Inland Revenue will share it with the respective international tax authorities by September 30, 2027. Essentially, this means that the government will have access to data on cryptocurrency transactions conducted via New Zealand-based exchanges, ensuring that any profits made from crypto trading are appropriately taxed.
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The tax agency emphasized that the growth of the crypto market has made it difficult for tax authorities to track income derived from crypto activities. This has led to increased global efforts to ensure tax authorities can monitor income and investment opportunities facilitated through large-scale intermediaries.
New Zealand’s Penalties for Noncompliance
Under the new regulations, crypto service providers who fail to meet the reporting requirements will face penalties of 300 NZD ($186) for each instance of noncompliance, with a maximum fine of 10,000 NZD ($6,200).
If a provider does not take “reasonable care” in complying with CARF requirements, they may be fined between 20,000 and 100,000 NZD ($12,000 to $62,000). However, if noncompliance occurs due to reasons beyond the provider’s control, they will not be penalized. Additionally, users who do not provide the necessary information for compliance with the reporting rules could be fined 1,000 NZD ($621).
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