TLDR: Crypto & CARF
From April 2026, the Crypto-Asset Reporting Framework (CARF) will give Inland Revenue direct access to crypto transactions linked to New Zealand tax residents, including activity on many overseas platforms.
If you’ve bought, sold, traded, earned, or held crypto, you need to report any taxable activity (income) in your tax return. The CARF doesn’t create new taxes, but it makes it easier for IRD to identify unreported crypto income. Missing or incomplete records, crypto income not declared, or assuming “no cash out” means “no tax” are mistakes to avoid.
Talk to your accountant about any crypto activity and use tools like Koinly to capture relevant data. If your activity is significant, consider engaging a crypto accounting specialist.
What is CARF (in simple terms)?
CARF is a global reporting system led by the OECD (Organisation for Economic Co-operation and Development). It allows tax authorities to automatically receive crypto transaction data, similar to how banks and digital platforms already report information.
In practice, this means:
- Inland Revenue will receive crypto transaction information
- Data will come from NZ platforms and many offshore crypto platforms
- IRD will use this data to cross-check what is reported in tax returns
CARF does not introduce new crypto taxes. It increases visibility and enforcement of existing tax rules.
When does this start?
Key dates to know:
- 1 April 2026 – New reporting rules start in NZ
- 30 June 2027 – First reports (FY27) are filed with Inland Revenue
How crypto is generally taxed in New Zealand
In New Zealand, Inland Revenue treats cryptoassets as a form of property for tax purposes. The tax outcome depends on how you use crypto and why you acquired it. There is no separate “crypto tax”. Existing income tax rules apply.
When crypto may be taxable
Income tax can apply in many situations, including when you:
- Sell crypto
- Trade or exchange one cryptoasset for another
- Earn crypto through activities like staking, lending, or mining
- Receive crypto as payment for goods or services
Tax can apply even if you never convert crypto back into cash.
One of the main factors Inland Revenue looks at is your purpose when you acquired the crypto. If your intention involved selling or exchanging it at some point, profits are often taxable.
Example:
- Michael buys $1,000 of Bitcoin.
- The price of Bitcoin rises to $1,200.
- Michael sells his Bitcoin.
- He recognizes $200 of taxable income.
NOTE: If Michael had sold his Bitcoin at a loss, this could reduce his taxable income for the year.
What if you're just holding crypto?
Most everyday Kiwis who decide to dabble in crypto are simply buying and holding cryptoassets as long-term investments. Buying and holding crypto is not typically taxable. However, some cryptoassets can generate income while you hold them, such as staking rewards or lending returns. Any income from that activity is usually taxable when it’s received.
Why this matters alongside CARF
CARF does not change how crypto is taxed. It changes what Inland Revenue can see.
With reporting data now coming directly from crypto platforms, IRD can more easily compare reported activity against tax returns. Gaps or omissions are more likely to be identified, and penalties can be applied.
Common risk areas include:
- Crypto income not included in tax returns
- Missing or incomplete records
- Assuming “no cash out” means “no tax”
- Crypto activity sitting outside normal accounting processes
Make sure your accountant knows about your crypto
If you’ve had any crypto activity, your accountant needs to be aware of it, even if it feels minor. At Kiwitax, we ask all clients with crypto activity to set up a Koinly account and link it to any exchanges/wallets used. Koinly’s reporting gives us what we need to include your crypto activity in your tax return.
If this information isn’t shared, your tax filing may not reflect the full picture, and you could be facing penalties.
If you have significant crypto activity, especially when it generates income (as explained above), standard tax advice often falls short. It is best to call in a specialist to ensure you are properly reporting everything, because the consequences of not doing so are not worth risking.
Please note: the team at Kiwitax are not crypto experts. We can identify when crypto tax issues apply and refer you to a specialist where needed.
Don’t wait for IRD to come to you.
Get on top of the new crypto changes now.
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Disclosure:
This article is intended for informational purposes only and does not constitute tax, financial, or investment advice. The information provided is based on current tax laws, as of the date this article was published, in New Zealand and general guidance for crypto investors. Tax obligations vary based on individual circumstances, and readers are encouraged to consult a qualified accountant/tax agent with crypto expertise for advice tailored to their situation. Kiwitax does not assume liability for any actions taken based on the information in this article.