New Zealand new legislation allows salary and wages to be paid in crypto-assets. Cryptocurrencies will function like normal currency and their value will be pegged to one or more fiat currencies. These will be ‘PAYE income payments’ meaning that workers are taxed directly from their salary while employers will make deductions from workers paychecks.
PAYE is calculated on the gross basis and the employer must gross up the net amount of crypto-assets, however ”where an employment agreement provides for an employee to receive either a net amount of crypto-assets calculated in NZD, or an amount denominated in crypto-assets, then the amount provided to the employee will need to be grossed up when calculating the PAYE payable.”
The cryptocurrencies used have to be converted into NZD (New Zealand Dollar) on the date it is paid to the employee and the conversion rates can be obtained from any centralized data repository site that will be listed on the Inland Revenue website.
The Inland Revenue Department also covered the purpose of crypto-assets and said that they have rapidly evolved and that it is possible for a crypto-asset to function as a voucher or debt security.
It seems that lawmakers around the world are more and more interested in cryptocurrencies, especially when it comes to payments and taxes.