Israel Tax Authority Requires Crypto Owners to Disclose Their Assets

Dozens of Israelis who own cryptocurrencies have received notification from the Israel Tax Authority, requiring them to fully disclose their assets and be taxed accordingly.

December 28, 2020 | AtoZ Markets – The Israel Tax Authority (ITA) has required cryptocurrency owners to fully disclose their assets and profits, Globes reports.

Israelis must now disclose crypto holdings

According to the newspaper, dozens of Israelis received notifications from the ITA. The department also sent requests to local and foreign cryptocurrency exchanges with the requirement to transfer information about the accounts of citizens.

ITA cited the EU’s General Reporting Standards and the Foreign Account Tax Compliance Act as the basis for obtaining data from trading platforms. According to the latter, the data of the US Internal Revenue Service is also transferred to Israel.

Experts explain the ITA’s interest in industry representatives by the lack of money in the budget and new Bitcoin records. According to the authorities, many traders should cash out amid rising quotations.

In 2018, the tax authority equated cryptocurrencies with financial assets by obliging individual investors to pay a capital gains tax of 25%.

In 2019, Israeli crypto investors faced the problem of paying taxes due to banks’ reluctance to accept funds received from transactions with digital assets. The country’s bitcoin association through the courts demanded that the banks explain the reasons for the refusals.

Recall that in September 2020, Israeli lawmakers proposed a bill seeking to amend the taxation of crypto-related activities so that the sale of bitcoin and crypto-assets isn’t subject to 25% capital gains tax.

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