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If you receive new cryptoassets from an airdrop, this may be taxable either on receipt, disposal or both.

The receipt is taxable if you:

  • have a cryptoasset business
  • acquired the cryptoassets as part of a profit-making undertaking or scheme
  • provided services to receive the airdrop (and the cryptoassets are payment for the services you provided)
  • receive airdrops on a regular basis, and the receipt is income.

In other cases, the receipt is not taxable. Where you receive the airdrop as a payment for services, GST may be payable.

The disposal of your airdropped cryptoassets is taxable where you:

  • have a cryptoasset business
  • dispose of the cryptoassets as part of a profit-making undertaking or scheme
  • provided services to receive the airdrop
  • acquired the cryptoassets for the purpose of disposing of them.

In many cases, the disposal will be taxable. However, in some cases, airdropped cryptoassets may be passively acquired and will not be acquired for the purpose of disposal.

If  you think this applies to you, you can find more information in 'Income tax - tax treatment of cryptoassets received from an airdrop' on our tax technical website.

QB 21/06 Income tax - tax treatment of cryptoassets received from an airdrop

Acquiring cryptoassets to sell or exchange

Using cryptoassets for a profit-making scheme

Cryptoassets for businesses

 

Last updated: 29 Jul 2021
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