New Zealand to enforce OECD tax reporting frameworks by 2026

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New Zealand plans to implement the Organisation for Economic Co-operation and Development’s (OECD) digital asset reporting framework by April 2026, according to a recently released tax policy document.

The measure aims to prevent tax evasion by ensuring firms provide information on transactions in digital assets. This means New Zealand-based digital asset service providers will have to collect information on users’ transactions starting April 1, 2026.

New Zealand’s Minister of Revenue, Simon Watts, introduced a new bill titled Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) on August 26. In it, he proposed confirming annual income tax rates, tax relief measures, amendments to the Common Reporting Standard (CRS), and the implementation of the OECD’s Crypto-Asset Reporting Framework (CARF).

The OECD—an intergovernmental policy forum and standard-setting body—approved the CARF in 2022 as a standard to help “fight against international tax evasion” and “ensure that the tax transparency architecture remains up-to-date and effective,” the body said at the time.

New Zealand‘s adoption of the framework means that starting on April 1, 2026, digital asset service providers based in New Zealand will be required to collect information on users who operate and transact through their platforms. In addition, they must report the information to Inland Revenue by June 30, 2027.

The information collected by the Inland Revenue will then be shared with relevant tax authorities worldwide if it pertains to reportable users in other jurisdictions; this will be done by September 30, 2027.

In other words, digital asset traders who use exchanges in New Zealand will soon have their transaction data reported to the government and potentially shared with other authorities around the globe. According to the tax agency, this will ensure that profit derived from digital asset trading is properly taxed.

The tax agency said implementing CARF was a necessary measure because “tax authorities do not have visibility over income derived through crypto-assets like they do with income generated through more traditional sources.”

It added that there has been an increased drive on the international stage to ensure that tax authorities “retain visibility over income or investment earning opportunities that are facilitated for individuals through large-scale intermediaries.”

Digital asset service providers who fail to comply with the new reporting rules will be fined NZ$300 (US$186) for each instance of failure, with the penalty capped at NZ$10,000 (US$6,200). Users who fail to provide information necessary to comply with the reporting rules could also be subject to a NZ$1,000 (US$621) fine.

The agency clarified that service providers will not be held liable for penalties if the reason for non-compliance is beyond their control. However, if service providers do not take “reasonable care” to meet CARF requirements, they could be fined as much as 20,000 to 100,000 New Zealand dollars (US$12,000 to US$62,000).

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