According to PA News, New Zealand's Revenue Minister, Simon Watts, has introduced a proposal to incorporate the Organisation for Economic Co-operation and Development's (OECD) Crypto-Asset Reporting Framework (CARF) into national law. The legislative proposal, submitted on August 26, aims to ensure transparency in crypto transactions and is set to take effect on April 1, 2026.
Under this new framework, crypto service providers in New Zealand will be required to collect transaction information from reportable users and submit it to the Inland Revenue by June 30, 2027. The collected data will then be shared with relevant tax authorities globally by September 30, 2027, to ensure proper taxation of crypto-derived profits.
Failure to comply with these requirements could result in fines of $300 per instance, with penalties for service providers potentially reaching between $12,000 and $62,000. Users who do not provide the necessary information could face fines of up to $621.
This move highlights New Zealand's commitment to enhancing transparency and ensuring that crypto transactions are properly taxed in line with international standards.
