The Israel Tax Authority has published a document that clarifies the status of digital currencies. According to the tax service, Bitcoin should not be equated to a currency or any type of currency. Tax officials believe that Bitcoin and other digital currencies should be treated as goods.
In practice, this may mean that transactions in Bitcoin cannot be equated to typical transactions with money, that is, payment with cryptocurrency for a service rendered or a purchase cannot be considered a financial transaction, but rather such a transaction should be understood as a kind of barter.
According to this document, Bitcoin will be considered in accordance with the Income Tax Decree as “assets”, and their sale will be taxed as a sale of “property”. Income from their sale will be classified as capital income and capital gains, and will be taxed at fixed tax rates.
Bitcoin sellers (individuals) are required to pay 25% on capital gains, provided proof of expenses for the purchase of bitcoins is provided. Otherwise, the full amount of the sale will be taxed.
Exchanges and businesses trading virtual currencies will be required to charge 17% VAT from their customers. Traders and miners must also pay income tax to the Israeli treasury, since their activities are considered the same as a gaming business in the eyes of the tax authorities.
Such strict regulations have been developed in the three years since the government and tax authorities in Israel paid attention to Bitcoin. From 2014 to 2017, cryptocurrencies were in an uncertain status in this country.
Currently there is no information about when the proposed tax principles of this project could be implemented by the government.
According to https://kiev.bc.events
You May Also Like
American insurance company purchased 5,500 BTC
The American insurance giant with 169 years of experience, MassMutual, acquired 5.5 thousand BTC for $100 million for its investment fund.
Bitcoin fell below $36,000
On the evening of May 5, quotes of the first cryptocurrency dropped to levels near $35,500. At the time of writing, the price had adjusted to levels around $36,500
