Israel's Tax Authority Wants to Treat Bitcoin As a Kind of Property
Israel's government is set to apply capital gains tax to bitcoin sales, categorizing digital currencies as a type of property. According to a statement published on 11th January, the Israel Tax Authority (ITA) said that it would consider bitcoin and other digital currencies as a kind of intangible asset rather than a foreign currency. Profits would then be taxed at the capital gains rate, which in Israel begins at 25%. The agency said in a translated statement: "...and therefore [bitcoins] will be considered in accordance with the Income Tax Ordinance as assets and their sale will be....
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The Bank of Israel (BoI) and the Israeli Ministry of Finance have issued a joint statement calling on the public to exercise caution with regard to digital currencies. The warning falls in line with what we've heard from regulators across the world over the past few months. The Bank of Israel and the ministry stress that digital currencies are not legal tender, nor are they issued or backed by a central bank, which means there is not legal requirement for anyone to accept or exchange them. The joint statement was issued following a meeting convened by the Governor of the Bank of Israel,....
Michael Eisenberg is a partner at early-stage venture capital fund Aleph. A key figure in Internet and software investment in Israel, he currently resides in Jerusalem and lectures on entrepreneurship at the Hebrew University. Here, he makes a case for Israel as a potential hub for digital currency innovation. This week, the US Internal Revenue Service (IRS) handed Israel a golden opportunity on a silver platter. Or, shall I say, a virtual gold opportunity. By deciding to tax bitcoin as an asset, like gold, the US Government effectively doomed bitcoin as a currency. As Robinson Meyer....
New legislation introducing tighter restrictions on payments with large sums of cash will enter into force in Israel on Monday. The goal, as stated by the country’s tax authority, is to improve the fight against organized crime, money laundering, and tax evasion. Critics doubt the law will achieve that. Authorities in Israel Go After Cash Purchases, Introduce Lower Limits Payments of large sums of money in cash and bank checks will be further restricted in Israel by amendments set to take effect on Aug. 1. Tax officials want to further reduce the circulation of cash in the country,....
The Israeli Tax Authority has issued an official draft circular to clarify the tax guidelines that apply to bitcoin adopters. In an announcement last week, the Israel Tax Authority released its draft [PDF] on the proposed taxation of virtual currencies which are considered “assets”. Pointedly, the announcement also cites the Bank of Israel – the country’s central bank – which does not see bitcoin or virtual currencies as foreign currencies and will, therefore, be taxed according to existing fixed tax rates. An excerpt from the announcement reads: [Bitcoin] will be considered in accordance....
Villa available for sale in Bitcoin only, Caesarea, Israel. Are you looking to buy a house with beautiful views? What if you were told that such a house is available and that the prime minister would be your next door neighbor? Well, there is property available in the exclusive area of historic Caesarea in Israel. The owner is accepting only bitcoin for his seaside villa and it doesn't look like it will all be dumped if/when received. The property is located in a quiet, up-market Caesarea on the Mediterranean coast. The villa has seven large bedrooms, five bathrooms, a safe room and an....