Cryptocurrency may feel new and digital, but in the eyes of Inland Revenue, it has been taxable for some time. As more New Zealanders buy, sell, and use cryptocurrency, tax rules have become clearer, and from April 2026, crypto transactions will be far more visible to Inland Revenue than previously.
Inland Revenue classifies cryptocurrencies as a form of property. This means the tax treatment depends on how the cryptocurrency is used and its characteristics. In most cases, where crypto is acquired with the intention of disposal at a profit, any gain made on disposal is likely to be taxable as income. Similarly, where crypto is disposed of at a loss, losses may be available to offset other income.
Inland Revenue generally considers cryptocurrencies to be acquired with the intention of disposal. While it is possible to demonstrate an alternative purpose, this can be difficult, and Inland Revenue requires clear evidence to support a different intention.
Crypto gains and profits are taxed at the same rates as other income, depending on your total earnings for the relevant tax year.
A common misunderstanding is that tax only applies when cryptocurrency is converted back into New Zealand dollars. In reality, a range of crypto‑related transactions can give rise to tax obligations, including:
- Trading cryptocurrencies;
- Selling cryptocurrencies for New Zealand dollars or other legal currencies;
- Exchanging cryptocurrencies for goods or services;
- Lending cryptocurrency in certain circumstances;
- Selling non‑fungible tokens (NFTs) for a profit;
- Rewards from mining or staking cryptocurrency (using high powered computers to solve complex mathematical problems to verify and/or validate transactions); and
- Airdrops (free tokens received that are then on sold), where they are business income, part of a profit‑making scheme, or received regularly as income.
Historically, monitoring and enforcing these rules has been challenging, particularly where activity occurs through overseas platforms. This is changing. From 1 April 2026, New Zealand will adopt the OECD’s Crypto‑Asset Reporting Framework (CARF), an international reporting regime aimed at improving tax transparency for cryptocurrencies.
New Zealand‑based crypto asset service providers will be required to collect information about users and report certain crypto transactions to Inland Revenue. This information will be shared between participating tax authorities in a large number of countries. As a result, crypto activity held offshore will become more visible to tax authorities.
For most investors, CARF does not introduce a new tax. Rather, it enhances Inland Revenue’s ability to verify that existing tax obligations are being met. Inland Revenue has consistently stated that income derived from cryptocurrency must be included in annual tax returns, and taxpayers are expected to maintain accurate records of transactions and values in New Zealand dollars. For New Zealanders with cryptocurrency, understanding these rules and maintaining good records has become increasingly important.
Need further info where cryptocurrency is concerned? Feel free to contact us at MCI for advice and support in this area.