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20 Jun 2018

Whether remuneration paid to an employee in cryptocurrency is subject to PAYE or FBT

It is becoming more common for employees (particularly those working in cryptocurrency-related industries) to receive regular remuneration in cryptocurrency. Inland Revenue has been asked whether cryptocurrency paid in those circumstances is taxable to the employee (PAYE) or payable by the employer (FBT). 

Related documents

The issues paper resulted in the following rulings:

These earlier rulings were withdrawn and replaced by:

About issues papers

Inland Revenue’s Tax Counsel Office (Public Advice and Guidance) develops and publishes public statements interpreting the tax laws.

Where significant uncertainty exists, it helps us to hear from interested parties before we prepare a public statement. This generates discussion so we gain a better understanding of the issues, including practical concerns. An issues paper sets out our initial views on how the relevant tax laws may apply. If it results in the issue of a draft public statement, public consultation will occur in the usual manner.

Given that issues papers produced by the Tax Counsel Office represent our initial views only, taxation officers, taxpayers and practitioners must not rely on them. Only finalised public statements represent authoritative statements by Inland Revenue of its stance on the issues covered. 

Any views presented in an issues paper do not change the Commissioner’s current position or practices.

Find out more about issues papers