When tax may apply
In New Zealand, crypto is considered as a form of property for tax purposes.
If you sell your crypto for more than you paid for it, you may need to pay tax on profits at your income tax rate, with the income calculated on the value at the time you sell.
Sharesies Crypto doesn’t withhold or manage crypto-related income tax on your behalf. You’ll be responsible for reporting taxable income to Inland Revenue and paying any tax obligation at the end of the tax year.
The New Zealand tax year runs from 1 April to 31 March. For most individuals without an extension of time, income tax returns are generally due by 7 July following the end of the tax year, although not everyone is required to file an income tax return.
How to determine your taxable income
When you dispose of crypto (for example, when you sell it), your taxable income from that disposal is:
Taxable income = Proceeds from sell transaction minus cost of the crypto sold minus transaction fees
To help you determine your total crypto-related taxable income over a tax year, Sharesies Crypto offers two transaction reports.
Both reports provide a record of your crypto activity within Sharesies Crypto for a selected time period, including buy and sell transactions. They can be used to help determine any taxable income that may arise from your activity on Sharesies Crypto:
Crypto transaction report - taxable income (CSV)—provides a single indicative taxable income figure based on your value of sold crypto assets and weighted average cost of sold crypto assets.
Crypto transaction report - basic (CSV)—a list of your buy and sell transactions. Useful if you need raw transaction records to upload to a third-party tax calculator or accounting tool.
How to report your taxable income
Once you have calculated your taxable crypto income, you can report it to Inland Revenue in your annual income tax return (IR3), if you are required to file one. For most individuals without an extension of time, income tax returns are generally due by 7 July following the end of the tax year. You can complete and submit your return through ‘myIR’ on the Inland Revenue website.
If you file an individual income tax return (IR3), you will need to include your crypto-related taxable income into the 'other income' box of your IR3. In the 'Crypto Transaction Report - taxable income', this amount is given as ‘Taxable income for the period NZD’.
A few things to keep in mind:
Keeping copies of your crypto transactions is helpful for tax purposes.
If your total crypto-related taxable income is a loss, this may offset your income tax liability or result in a net refund from the Inland Revenue.
Sharesies transaction reports only cover your Sharesies Crypto assets. If you hold crypto on other platforms or wallets, you'll need to include that activity in your tax return as well.
Sharesies doesn’t report or pay tax for you, or withhold or manage crypto-related income tax on your behalf. It’s up to you to keep track of your crypto activity, report it in your tax return and pay any tax you owe.
We don’t provide any tax, financial, or legal advice. You’re responsible for understanding and reporting your crypto-related taxable income to Inland Revenue and paying any tax obligation at the end of the tax year. You should seek professional tax advice if you are unsure about your tax obligations.
Where to get help
For detailed guidance, check out Inland Revenue’s info on cryptoassets.
You can also talk to a tax professional if you’re unsure about your situation.
Learn more
Sharesies Crypto is offered by Sharesies Crypto Limited.