themarker.com
Israel's New Cryptocurrency Tax Law
Israel addresses the taxation of cryptocurrencies and NFTs with new legislation, aiming to collect potential billions in revenue and improve reporting compliance.
Hebrew
Israel
IsraelFinanceRegulationCryptocurrencyTaxation
Israel Tax AuthorityState Comptroller's Office
- How will digital assets be classified and taxed under the proposed law?
- Digital assets will be classified as "assets" under the Income Tax Ordinance, and profits from their sale will be subject to capital gains tax (25% or up to 47%, depending on business status).
- What is the Israel Tax Authority's perspective on this new legislation?
- The Israel Tax Authority acknowledges this legislation is a first step toward fully regulating digital assets and cryptocurrencies, addressing concerns about insufficient attention to this growing area and the need for improved reporting and enforcement.
- What prompted Israel to introduce new legislation regarding digital assets?
- Israel is introducing legislation to regulate the taxation of digital assets, including cryptocurrencies and NFTs, following criticism from the state comptroller and the recent surge in Bitcoin's price.
- What are the key findings from the State Comptroller's report on cryptocurrency taxation in Israel?
- The State Comptroller's report revealed a potential tax revenue of \$2-3 billion from cryptocurrency activities but noted that only about 500 individuals reported such activities annually, a tiny fraction of the estimated 200,000 potential reporters.
- What are the key considerations for determining when profits from digital assets are considered earned in Israel?
- The new law clarifies when profits from digital assets are considered to be earned in Israel, focusing on the residency status of the seller at the time of purchase and whether the asset reflects rights to Israeli property or individuals.