Ananda Raj Pandey

Is it legal to pay your employee in crypto currency like Bitcoin?

Crypto currency are popular and easy to manage, but i am not sure, whether it is legal or not to pay someone with it and manage your taxes same time.

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3 Answers

Katherine Hawes

Bitcoin is not considered money. however it can be used to pay an employee via a valid salary sacrifice scheme but it will be subject to Fringe Benefits Tax Assessment Act.

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Rebecca Carroll-Bell

I find BitCoin and other crypto currencies so interesting. From a legal view point I have no idea how to classify them - are they currency? goods? something else? Are they subject to GST? Income tax? FBT (as Katherine mentioned above, in some circumstances, yes).

I also find people's motivations for using cryptos intriguing.

Personally, I find the wild fluctuations in the 'value' of each unit worrisome and woudl not agree to be paid in BitCoin.

Uttam Jha

Uttam Jha , Owner at Tyche Infotech Pty Ltd

Agreed ofcourse we cant buy beer in bitcoins can we ?
Agreed ofcourse we cant buy beer in bitcoins can we ?
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Ananda Raj Pandey

Ananda Raj Pandey , Developer at SavvySME

Thank you Katherine. It will help.

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