IRD's intent test and MetaMask DeFi activity
New Zealand does not have a general capital gains tax, but the Income Tax Act taxes gains from the disposal of property acquired with a profit-making purpose or intention. The IRD has applied this framework to crypto, and its view is that most crypto trading is taxable because most traders acquire tokens with the intention of profiting from disposal.
For MetaMask DeFi users, the intent test applies at the point of acquisition. If you acquired ETH or other tokens to swap, trade, provide liquidity, or otherwise generate returns, the IRD's position is that the activity has an income character. The IRD's view is that the exception for purely passive long-term holds is narrow, and most active MetaMask activity is likely taxable.
How gains from MetaMask are calculated in NZ
When a MetaMask disposal is taxable, the gain is calculated as the NZD proceeds minus the NZD cost of the tokens disposed of. The calculator uses FIFO to identify which lots are being sold. Gains are included in your taxable income for the year and taxed at your marginal income tax rate.
Unlike Australia, New Zealand does not have a 50% CGT discount for long-term holdings. The full gain is included in income regardless of how long the tokens were held, if the disposal is taxable under the intent test. This makes record-keeping particularly important - the cost base and acquisition date for every token must be tracked.
DeFi staking rewards and income in New Zealand
Staking rewards, DeFi yield, and liquidity mining returns received into your MetaMask wallet are generally treated as taxable income at NZD fair market value when received. The IRD's guidance on crypto confirms that amounts received as consideration for services or from profit-making activities are assessable income.
The NZD value on the date of receipt becomes the income amount and the cost base for those tokens. A later disposal then generates a separate gain or loss calculated from that cost base. For DeFi users with many small reward receipts - for example, Aave interest accruing over time or LP fee income - DYOR.tax tracks each receipt and its NZD value automatically.
What activity might not be taxable in New Zealand
The intent test potentially excludes purely passive long-term holding where there was no profit-making intention at acquisition. However, the IRD's view is that this exception is narrow. Simply holding a token for a long time does not automatically mean the original acquisition lacked profit intent.
Transfers between your own wallets are not disposals and are not taxable events. Buying tokens with NZD is an acquisition, not a disposal. DYOR.tax uses self-transfer detection to identify transfers between addresses you control and excludes them from taxable calculations.
Related calculators and guides
All countries: MetaMask Tax Calculator
NZ country page: NZ Crypto Tax Calculator
Other MetaMask countries:
MetaMask Australia ·
MetaMask UK ·
MetaMask Canada
DeFi guides: Uniswap Tax Calculator · Aave Tax Calculator · Crypto Staking Taxes · Airdrop Taxes