Bitcoin Israel. Israel is not the first country to tax cryptocurrency, In fact, the Israeli government’s move is like the decision made by tax authorities in the United States two years ago, when it decided to classify the popular digital currency as a type of taxable property.
The Israel Tax Authority released a draft circular last week, which detailed “the tax professional activities of virtual currencies.” Under the new rules, transactions involving bitcoins in the country will be treated as barter transactions, and any profit from coin sales can be charged with capital gains tax, which starts at 25 percent. Aside from the capital gains tax on those profits, the ITA said commercial sales and trading transactions may also be subjected to value added tax.
The ITA said profits made from the sale of cryptocurrencies in the country will be need to be declared to the tax authority. (READ SO COINBASE AND IRS HAVE BEEN PUT IN DOUBT)
“According to the Bank of Israel, virtual currency is not considered ‘foreign currency,’ and therefore these coins will be considered in accordance with the Income Tax Ordinance as ‘assets’ and their sale will be taxed as a sale of ‘property’ and income from their sale will be classified as capital income and capital gains will be taxed according to the fixed tax rates,” the tax authority said in a statement.
