In New Zealand, there is no general capital gains tax. However, income tax legislation specifically includes various forms of gain that would otherwise be considered a capital gain within the definition of income. This means that some gains that might be considered capital gains in other countries are actually taxed in New Zealand. The Bright-line Test is an example of this, which taxes specific capital gains as income.

Outside of the Bright-line Test, profits from the sale of assets such as homes, art, shares, classic cars, crypto, and racehorses are not taxed as capital gains in New Zealand. However, profits made when selling personal property (excluding land) are taxed as income if the property was acquired for the purposes of disposal, if an undertaking or scheme was entered into to make a profit with the property purchased, or if the seller is in the business of dealing in that personal property.

In summary, New Zealand does not have a capital gains tax by definition, but some gains that would be considered capital gains in other countries are taxed as income in New Zealand.