Nikolas Sargeant
New Zealand's Revenue Minister Simon Watts has introduced a bill to implement the OECD's framework for automatic exchange of crypto-asset financial information.
The Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Bill aims to incorporate the OECD's Crypto-Asset Reporting Framework (CARF) and updates to the Common Reporting Standard into New Zealand law.
If passed, the new regulations would take effect on April 1, 2026. From this date, New Zealand-based crypto service providers would be required to collect transaction information from reportable users.
Penalties Proposed for Non-Compliance with Reporting Requirements
The proposed legislation includes penalties for non-compliance. Service providers face a $300 fine per instance of failing to report, while users could incur a $1,000 penalty for not providing required information about themselves or related persons.
Providers must submit collected information to Inland Revenue by June 30, 2027. The tax authority will then share this data with relevant international tax authorities by September 30, 2027.
Minister Watts highlighted the unique compliance challenges posed by crypto-asset technology, noting that tax officials currently lack the same level of oversight over crypto-asset income as they do with traditional income sources.
New Zealand Strengthens Crypto Oversight Amid Regulatory Shifts
This move follows recent calls for regulatory changes in New Zealand's approach to digital assets. Earlier this year, Andrew Bayly, Minister of Commerce and Consumer Affairs, advocated for a significant overhaul of the country's digital asset regulations and approach to blockchain technology.
Last month, New Zealand's tax authority announced its intention to focus on crypto traders who have failed to declare their earnings from these activities in their tax returns, signaling a more proactive stance on crypto regulation and taxation.
