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Pay 28% tax instead of 39% on your crypto profits — but here’s the catch.

Thinking about using a company structure for your cryptocurrency investments? Make sure you're informed about the significant tax considerations and explore the benefits, risks, and costs.You might think moving your cryptocurrency investments into a New Zealand company offers straightforward tax benefits. However, the reality is nuanced, and making the wrong move could lead to unexpected costs or compliance headaches.Here's what savvy investors must know:...

Did your crypto dream just become a tax nightmare?

Most Kiwi cryptocurrency investors started their crypto journey for financial freedom and wealth creation. Yet, ironically, many now feel trapped by the complex web of cryptocurrency taxation.If you’ve ever felt confused, overwhelmed, or downright anxious about your cryptocurrency tax obligations, you're not alone. In fact, our recent survey revealed that over 70% of crypto investors in New Zealand aren’t fully compliant with their tax obligations.Why? Because crypto tax isn’t straightforw...

Planning Ahead for 7 April 2026: Crypto Profits and Tax Payments

We’re currently preparing 2025 tax returns for our cryptocurrency clients, and most are in profit which means they have tax to pay.If the tax amount owed is under $60,000 your payment is due on 7 April 2026. If the amount is over $60,000, then the payment was due 7 May 2025, and interest is already ticking up.In our view, the most important thing right now is certainty. You want to know what’s due, when it’s due, and how you’ll fund it. No one likes a surprise tax bill, especially when y...

Should There Be a Loss Carry-Back Mechanism for Crypto Investors and Traders?

Note: I posted a shorter version of this post on LinkedIn, and it has over 60,000 views. Join the conversation on the original post here.The IRD is currently ramping up enforcement and threatening audits for taxpayers who are non-compliant with crypto tax obligations.But here’s the kicker: if a taxpayer makes a large profit in the 2023 year, then a loss in a subsequent year, they can be left owing a significant amount of tax, with nothing to show for it. Even worse, they may end up in a worse ...

How Do You Stack Up? Here’s What We’re Seeing Across NZ

We prepare financial statements and tax returns for businesses, traders, and investors with cryptocurrency. This year, we’re sharing some real (but anonymous) data to help you benchmark yourself.The figures below are all based on realised gains. That means profits actually cashed out to fiat, or gains made when one token is disposed of for another. They don’t include unrealised gains still sitting in wallets. That distinction is important because while unrealised gains can look huge on paper...

“There’s No Specific Crypto Tax Law, So I’m Not Captured”—Think Again

It’s a line we’ve heard many times: “There’s no crypto-specific legislation in New Zealand, so I don’t have to worry about tax on my crypto.”While it’s true that New Zealand doesn’t have a dedicated “Crypto Tax Act,” that doesn’t mean crypto is untaxed. Instead, IRD applies general tax principles, particularly those around property, trading, and income.Crypto Is Treated as Property, Not CurrencyUnder NZ law, cryptocurrency is considered property, not money. This means ...

Blockchain Records ≠ Sufficient Tax Records: Why Good Record-Keeping Still Matters

A common belief among crypto investors is that the blockchain provides all the records you need for tax reporting. After all, every transaction is permanently recorded, right?While the blockchain does record transactions, it doesn’t capture the full information required by the Inland Revenue (IRD). The blockchain shows what happened, but not necessarily when, why, or at what value in New Zealand dollars. The blockchain records can also be very difficult to understand and for us to analyse, pro...

Who Owns Your Cryptocurrency? Tax Implications in New Zealand

In the evolving landscape of cryptocurrency investments, determining who legally owns digital assets and cryptocurrency and who bears the tax liability can be particularly complex. This question of ownership becomes especially important when joint finances intersect with individually held crypto accounts, creating potential confusion about tax obligations. Or an individual acting in their capacity on behalf of a company or Trust.For example, John is a director of Crypto Investments Limited (CIL)...

“IRD will never know” – Crypto Not as Hidden as You Think

Crypto’s “Wild West” reputation fuels a persistent myth: the IRD can’t track my trading, so I don’t need to report it. Despite crypto’s decentralized, pseudonymous nature, this couldn’t be further from the truth. The IRD has sharpened its tools to enforce tax compliance.Below are some examples of what we’re noticing about IRD and what’s to come.Centralized Exchanges: Platforms like Easy Crypto, Binance and Coinbase enforce KYC, tying your identity to trades and wallet activity....

Understanding 2025 Provisional Tax

Provisional tax is a method of paying income tax in instalments throughout the year, rather than in a lump sum at the end of the year. This system is designed to help taxpayers manage their cash flow and avoid a large tax bill at the end of the year. However, it can be difficult for cryptocurrency investors to manage due to the large fluctuations and volatility of cryptocurrency prices and market conditions compared to an ordinary commercial business, which may have more predictable revenue.Who ...

2025 Cryptocurrency Financial Statements & Tax Returns: Information Required

The 2025 financial year wrapped up on 31 March 2025, and we’re here to make preparing your financial statements as seamless as possible. Acting now will save you time, keep costs down, and avoid unnecessary headaches. Please take stock of all cryptocurrency tokens you owned on 31 March 2025 in an Excel spreadsheet. This simple step can prevent extra work and tricky reconciliations later on.We have a client checklist (see below) to streamline the accounting process and ensure that your informat...

Crypto Tax Compliance and IRD Voluntary Disclosures

We have received numerous new client enquiries who have been trading cryptocurrency for several years. These clients are accepting that they need to comply with tax regulations and properly disclose their cryptocurrency income to the IRD.Income must be reported in the financial year it was earned. For clients who have cryptocurrency income in previous tax years, we assist them in preparing voluntary disclosures to the IRD to ensure compliance....

End of Financial Year Webinar – 19 March 2025

Join us on Wednesday, 19 March, at 1pm for our end-of-financial-year cryptocurrency tax webinar.This webinar is designed for individuals and businesses involved in cryptocurrency who would like to understand more about cryptocurrency tax and their tax obligations. We want to prepare you for the end of this financial year and ensure your success in the new financial year.What You’ll Learn:Activity we’re seeing from Inland RevenueCommon misconceptions about crypto taxationRecord keep...

Tax Implications of Gambling with Cryptocurrency

While gambling winnings and losses with traditional currency (fiat) are typically non-taxable, the situation becomes more complex when cryptocurrency is involved. This article explains the key tax considerations and provides practical examples to help you understand your obligations....

Lower Tax Rates or Higher Profits? What to consider when cashing out cryptocurrency gains?

With cryptocurrency prices increasing, many investors are looking to take profits off the table. This article covers what you can do to minimise the amount of tax you will pay. In short, be strategic about when and the amounts you cash out, but it requires careful planning and an understanding of how the profit is calculated. A key conclusion is that while tax planning is essential, it shouldn’t override fundamental investment decisions if there’s a strong potential for additional gains.Let�...

Crypto Credit Cards- A Tax Perspective

In an era where cryptocurrency integration into daily life is expanding, crypto-linked debit and credit cards represent a significant development. However, these cards come with important tax implications that require careful consideration....

Understanding Provisional Tax and Cryptocurrency

Many of our clients have 2025 provisional tax due on 15 January 2025 for the 2025 financial year. This article outlines provisional tax, who needs to pay it, and how it is calculated. We also include several examples which may apply to your situation. Please note that this article provides a general overview of provisional tax rules. Individual circumstances are required for more specific and tailored tax advice.What is Provisional Tax?Provisional tax ensures taxpayers pay their income tax in in...

Cryptocurrency Tax Implications – Withdrawing Your Original Capital

We’ve been asked a couple of times recently about the tax implications of withdrawing your original capital. “If we invest $100,000 in Bitcoin and it rises to $300,000 and we decide to take out our original $100,000, are we just recovering our original investment and therefore tax is not due on this?”Unfortunately, that’s not how the profit is calculated. This is not isolated to just cryptocurrency but to all businesses. It is the difference between cash accounting and profit accoun...

When A Cryptocurrency Loan Is Not A Loan

We often think that cryptocurrency is used like money. It is transferable and has value; therefore, we can loan it to someone else who can repay us, perhaps with interest. However, from a tax perspective, current income tax legislation and IRD’s definition of cryptocurrency as property results in these transactions being like a square peg trying to fit into a round hole; it just doesn’t work.To be clear, we are talking about cryptocurrency loans between two parties (not decentralized finance...

Cryptocurrency Gains: A Timely Reminder

As the cryptocurrency market continues its exhilarating ascent to new peaks, it’s easy to get caught up in the excitement. But let’s not forget about the less glamorous side: taxes. While your holdings may be growing in value, so too is your potential tax bill! The following article is a timely reminder of all things cryptocurrency tax.Please get in touch with us if you’d like to discuss your specific situation....

NZ Cryptocurrency Enquiry: Recommendations

The Finance and Expenditure Committee of New Zealand has prepared a report from their cryptocurrency enquiry. It focuses on recommending and advising the government to prepare for regulatory policies and find a legal stance on cryptocurrencies.There was a recommendation regarding the taxation of cryptocurrency (quoted below).“We recommend that Inland Revenue explore, in consultation with the digital assets industry in New Zealand, whether tax incentives for digital asset service prov...

Tax Guide: Recovered Cryptocurrency After Bankruptcy

This article follows up on our previous discussion regarding the tax implications of bankruptcies like FTX and Celsius. As you might recall, IRD’s position is that investors wouldn’t be able to claim losses on inaccessible crypto funds until bankruptcy proceedings were finalized.Now that the proceedings for Celsius and other exchanges have concluded, some investors have recovered a portion of their locked crypto. This raises the question:How do you account for recovered currency?Un...

IRD Scrutinizes Crypto Traders: How we can help you stay tax compliant.

IRD has announced a heightened focus on cryptocurrency transactions. With over $7.8 billion worth of crypto dealings identified, the IRD is using its sophisticated analytics tools to expose those who fail to declare income from crypto activity....

Importance of a Cryptocurrency Stock Take on 31 March 2024

We strongly recommend that all clients complete a cryptocurrency stock take on 31 March 2024. This will ensure that you do not pay more tax than necessary. It also ensures the integrity of the financial statements and cryptocurrency calculations to ensure that no transactions are missed and every transaction is captured.This article focuses on completing the stock take and recommended information and why it is important....

2024 Cryptocurrency Financial Statements & Tax Returns: Information Required

We’d like to start preparing your 2024 financial statements and tax return and need information from you.To accurately calculate your taxes, we need to have details of every single transaction involving buying, selling, swapping, earning/staking, gifting, airdrops, ICOs and margin/futures tradingWe’d like to ensure we have all information (and identify any missing parts) before commencing your work. This checklist will provide us with an overview of what to expect, to ensure your work is com...