New Zealand authorities equated cryptocurrencies to the main types of payments. Now companies can pay salaries in digital currency. According to the data, from September 1, 2019, the new Zealand tax authority will officially allow the payment of regular fixed amounts in cryptocurrency.
The resolution states that the cryptocurrency must be linked to a regular currency, and must also be convertible into a standard form of payment. However, the innovation does not apply to employees engaged in self-employment. New Zealand has become the latest country in the world to support companies that issue salaries to their employees in cryptocurrencies at the legislative level, writes the Coindesk.
In addition, payments must be made for work that is provided for by the employment agreement of the parties. Also, the salary in the cryptocurrency will have to be paid every month, either in full, or be a permanent part of the official earnings of the employee.
At the same time, the digital currency that will be selected for payment of wages must be linked to at least one of the national currencies. Finally, an employee who will be assigned a salary in cryptocurrency will have to be able to exchange virtual money for traditional means of payment.
We'd like to mention that this permission applies only to employees. "According to experts, such a move is quite risky, since price fluctuations can be too large and fast," the report says. Experts advise Kiwis gamble with BTC anonymously or cash out such payments immediately after receiving them.
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Crypto enthusiasts welcomed the event on the Reddit social forum. "Great, another step towards full crypto integration around the world," one of the authors wrote.
The decision will be valid for three years. Payments will be made for a fixed amount. In addition, wages must be paid in a crypto asset that functions as a currency. In other words, cryptocurrencies should replace Fiat money. This is intended to prevent companies from paying employees with illiquid or other low-spread virtual currencies.
The only reason for the innovation is to start collecting taxes from companies that can already pay their employees in cryptocurrency. At the same time, such a decision is likely to be unprofitable for the employees themselves. Despite the fact that the salary in digital currency will correspond to a fixed amount, this will not protect the employee from fluctuations in the price of crypto assets.
Cryptocurrencies are largely unregulated, digital assets that allow users to send money online without being tracked by third parties. Currently, payments in cryptocurrencies are also made in Japan.
