Israel to Tax Bitcoin as an Asset, Not a Currency

Bitcoin isn’t a currency and people buying and selling the cryptocurrency will be subject to tax, the Israel Tax Authority said Monday in an updated circular.

As a result, profits made on cryptocurrencies will be subject to the ordinary 25% capital gains tax for private investors to a 47% marginal rate for businesses, the authority said, instructing investors to report on their holdings within 30 days and arrange prepayment of tax.

The decision came after the authority issued its draft circular on Bitcoin taxation, which similarly discounted claims that Bitcoin and its peers are currencies, no different from the shekel or dollar, whose profits are not taxed.


Write: Sara Bauer


 

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