How to calculate the New Zealand dollar value of your cryptoasset income when you complete your tax return.
You need to use amounts in New Zealand dollars (NZD) when filing your income tax return.
Cryptoasset transactions are not in NZD. You need to calculate the NZD value of your transactions, when you:
- receive mining or staking rewards
- exchange your cryptoassets for different cryptoassets
- receive a payment in cryptoassets
- transact on offshore cryptoasset exchanges.
You’ll need to work out the NZD value of the cryptoassets you receive as income using an appropriate conversion rate at the relevant date. You may have to convert cryptoassets into a foreign currency before you can convert them into NZD.
Cryptoasset conversion rates
You must take reasonable care to use an appropriate value for your cryptoasset transactions and use a consistent method. You’ll need to keep records of the valuation method you use.
You can get conversion rates from the following centralised data repository sites.
Yahoo Finance: Cryptocurrencies
You can also get conversion rates from a public exchange. You’ll need to use a reputable exchange such as one with comprehensive know-your-customer and anti-money-laundering procedures in place. Which exchange (or exchanges) is appropriate depends on the circumstances.