Israeli Tax Authority Outlines Tax Guidelines for Digital Currencies
From NewsBTC
The Israeli Tax Authority has issued a circular outlining its position on Bitcoin and other digital currencies. The agency will look at the issue in two ways to determine tax status: Those who buy digital currencies as an investment, versus those who trade in order to make a living or run a business. The even-more complex issue of regulating initial coin offerings (ICOs) is yet to be dealt with.Read more: https://www.newsbtc.com/2018/02/19/israeli-tax-authority-outlines-tax-guidelines-for-digital-currencies/Regardless of which group users might fall into, as far as the Tax Authority is concerned, digital currencies like Bitcoin are to be considered an asset, not a currency.
This means that a person who holds digital currencies in order to create a capital gain — while not engaging in business — will be exempt from paying VAT (value added tax), but will be liable for capital gains tax, which in Israel is between 20-25% for most taxpayers; For those who engage with digital currencies for business purposes things are a little rougher, as they will have to pay 17% VAT on top of the capital gains tax.
Mining: Businesses that generate cryptocurrency through mining operations will be taxed as factories in Israel, depending on the volume of their activity. Further, entities whose income volume from cryptocurrency qualifies them as a business will now be considered a financial institute and will be taxed according to the same regulations that govern banks and currency exchanges in the country.
2018 just keeps proving to be the year of crypto regulation. Expect more to come.
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Geeez Louiseee. I live in Israel and love crypto. Trade from my American Account seeing as how I"m not Israeli. However the American Tax laws sound just as bad. Spit on all around. Banks are trying their hardest to make crypto investing non lucrative. They have no idea whats coming. Thanks for posting. Resteemed.
Thanks @contentjunkie for this wonderful update. Thanks so much @peakreal1
We can take out various type of update news from your every blog.I always visit your site & wait for your upcoming post.
Thanks
@resteem & follow done.
Paying tax on every transaction sucks, but this is how it always was with stocks. So, the same rules apply. I don't like it though, they tax us enough.
Still, as long as they don't go overboard and start banning or making things illegal in the crypto world, we should be ok. Safe regulation is normally a good thing.
Thanks for the post.
cryptocurrencies are just unstoppable, the values it offers are too immense to disregard
the best thing any government should do is to embrace this change digital currency and key into its limitless potentials
They have done the same in Australia.
This is such a sticky wicket. I am always interested to see how other countries are doing it.
Israel will end up holding most crypto in the world as they do now with gold.
Atmosphere that gives color to this country