Sunday , August 18 2019
Home / chile / New Zealand government legalises payroll payments with bitcoin and other cryptocurrencies | CryptoNews

New Zealand government legalises payroll payments with bitcoin and other cryptocurrencies | CryptoNews



New Zealand authorities have published an official newsletter saying that employers in the country will be able to pay the wages of bitcoin workers (BTK) and other cryptocurrencies.

The measure will take effect from September 1, the date on which New Zealand employers can choose to pay their payroll using this method. These payments will generate taxes and the country's Ministry of Internal Affairs (Department of Internal Revenue or IRD) explain how they should be canceled.

According to the IRD, employers will be able to pay their workers with cryptocurrencies meeting three conditions: that the payment is for services rendered by an employee under an employment contract, that is a fixed amount, and that is a regular part of the employee's remuneration.

The norm is tax as much as the range and directly excludes independent workers or freelance translators. Therefore, to receive payments in cryptocurrencies, you must employ: "This decision applies only to payees, not to independent taxpayers," as read in the August 7 proposal.

He adds that the cryptocurrencies that should be used to pay employees should not be subject to a lockout period and should be easily convertible into fiat currencies. The norm will rule for the next three years and the signature of the Director of Department of Internal Revenue, Susan Price.

In the newsletter, the tax authority called bitcoin and other cryptocurrencies as "crypto assets" (crypto assets), which "use cryptography and blockchain technologies to regulate their generation and verify transfers". As a result, the proposal of the government of New Zealand mentions an important variety of cryptocurrencies that can be used to pay salaries.

The cryptocurrencies to be used are bitcoin, bitcoin cash (BCH), bitcoin gold (BTG), lithocaine (LTC) and ether (ETH), which are defined as cryptocurrencies. Filecoin (FIL) and fentacoin (DCN) are also included as utility tokens.

Cryptocurrency payments that protect this New Zealand rule are based on a deduction from the employee's gross salaryor as a reduction in the calculation of the employee's gross salary. This in order to pay the appropriate tax.

Under this measure, if an employee agrees to a gross payout of $ 100 in cryptocurrencies and has a tax rate of 33%, the employer must pay a $ 33 IRD. In the meantime, the employee would receive the equivalent of $ 67 in the agreed cryptocurrency.

Since the rule stipulates that payments must be made in cryptocurrencies with high liquidity, it is likely that employers will need to choose between those with higher market capitalization and higher daily trading volume in order to pay salaries.


Source link