Long time crypto-currencies in Israel, from a tax point of view, were treated just like normal currencies. Now, however, there was a decision made by the Israeli tax authority, which classifies Bitcoin, Ethereum and co. as a property, which must be taxed in Israel.
The official confirmation, such as digital currencies, in Israel, are deemed to be taxed, was announced yesterday by the Israeli tax authority. This measure is no great Surprise, since the Bank of Israel to recognize already for a long time refuses to Kryptwährungen as currencies.
The position, which was considered a month ago, was clearly outlined:
The Bank of Israel’s position is that they [cryptocurrencies] should be viewed as a financial asset.
Crypto-currencies are no longer valid as currency, but are treated as property (in terms of a deduction from taxes). In Israel, most of the services and Goods of a value added tax are subject to, similar to how this is the case in Germany. In the published notification, it is clarified that both companies and private individuals can be affected.
Consequently, profits arising from the trade with crypto currencies, with the capital income tax is between 20% and 25%, taxed. Thus, the law’s currencies position on the taxation of Crypto is similar to the our in Germany.
Baudot-Trajtenberg also points to the fact that there is to date no precedent in the world that can serve as the basis for Central banks to have a uniform rule for the taxation, as well as for the regulation. This should be observed according to the Baudot-Trajtenberg is still sufficient, and studied, before further steps can be initiated.
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