There has just been a ruling by the head of the NZ tax department that clarifies the legality of paying employees in Bitcoin and how it should be handled on an accounting level.
It's a pretty dry read; however in short it's an endorsement of paying staff using Bitcoin...
Example: Employee paid part of salary in bitcoin
- Ken is employed by Cryptowonderland Ltd. His salary is NZ$10,000 per month before tax. Half Ken’s salary is payable in NZD direct credited to his bank account. The other half is payable in bitcoin transferred to Ken’s bitcoin wallet.
- PAYE should be calculated on the $10,000 gross payment and withheld and paid to the Commissioner (in New Zealand dollars). The net amount is payable to Ken.
- If Ken is a Kiwisaver member or is subject to, for example, child support or student loan deductions, the Employer’s Guide (IR335) and the PAYE calculator (both available on the Inland Revenue website www.ird.govt.nz) can be used to assist with calculating these.
https://www.classic.ird.govt.nz/resources/1/c/1c6029d0-611c-4a15-9cbf-b712129ab76c/tib-vol31-no7.pdf
No comments:
Post a Comment