Inland Revenue lays out ruling on how to pay staff in cryptocurrency | 1 NEWS NOW

For the first time, Inland Revenue’s released a ruling telling employers how they can legally pay their staff in cryptocurrencies like Bitcoin.

It’s always been possible, but the rules around tax have always been grey.

From the 1st of September, salaries in cryptocurrencies will be subject to tax, just like any other currency.

“The regulators are starting to catch up in New Zealand,” said Ross Carter-Brown, chief executive of BitPrime.

His company sells bitcoins and he says the clarification has been a long time coming.

There will be strict rules, and different types of cryptocurrency will be taxed differently.

Employers will also have to pay their staff in regular amounts, and the payment must be able to be converted directly into a government issued currency, like New Zealand Dollars.

While there are questions over just how popular this payment method will be, experts say they can understand the appeal.

Alex Sims from Auckland University is an expert in cryptocurrencies.

She…