New Zealand will legally allow companies to pay salaries in cryptocurrency starting September 1, becoming the first nation to do so.
In its August bulletin, New Zealand’s tax office published a new ruling under the Income Tax Act that states that an employee can be paid salaries in crypto assets as long as the payments are for services performed under an employment contract, are for a fixed amount, and form a regular part of the employee’s salary.
The ruling excludes the self-employed from earning incomes in digital currencies. Companies that opt to pay employees in crypto will be able to deduct tax under the country’s pay-as-you-earn income tax scheme.
The new ruling signed on June 27 by the agency’s director of public rulings, Susan Price will apply for three years from Sept. 1, 2019.