Israel Tax Authority Deems Bitcoin a Taxable Asset
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....
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The Israel Tax Department has drafted new cryptocurrency tax rules that consider Bitcoin as an asset, eligible for capital gains taxes. The cryptocurrency community in Israel now has some clarity about the legal status of Bitcoin in their country. The country’s tax authorities have recently announced that Bitcoin and other cryptocurrencies will be considered as assets and are taxable. The legal status of Bitcoin has always been a grey area in many countries across the world. But with the Israeli authorities clarifying their stance over the cryptocurrency, people can now manage their tax....
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,....
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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....
Israeli business newspaper Globes is reporting that the Israeli government is mulling the possibility of imposing a tax on profits from Bitcoin. The article states that the Israel Tax Authority is considering the move based on the idea that anyone who makes profits from Bitcoin owes taxes. It was unclear how exactly a tax on Bitcoin profits would be levied, though, as Israel has yet to even recognize Bitcoin as an official currency. Israeli Bitcoin exchange Bits of Gold’s CEO, Jonathan Rouach, suggests the tax authority is not prepared for the necessary paradigm shift to even know where to....