Israeli lawmakers have 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.
September 26, 2020 | AtoZ Markets – According to local news reports, four members of the Knesset, Israel’s legislative body, from the Yisrael Beiteinu faction, the secular nationalist political party, submitted a private member’s 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.
The proposed bill seeks to amend taxation of digital assets activities under the Income Tax Ordinance. Crypto news aggregator websites like cryptopanic are a good way to keep up with the crypto industry.
The tax on Bitcoin crypto-assets is 25% in the country
The Israeli tax laws currently see Bitcoin as an asset in Israel, meaning that sales of the crypto or conversions to cash attract a capital gains tax of 25%. However, some users like short-term BTC lenders and those who undertake bonds-related activities pay capital gains of 15%.
Read also: Israel court classifies Bitcoin as asset
The proposed bill states that the regulatory reality in Israel is not adapted to the existing reality in the field. The bill also seeks to add a section in the ordinance, which deals with the “determination of distributed digital currency.”
What is the purpose of the bill?
Under this proposed section, the Minister of Finance may prescribe provisions under which the digital assets shall be determined as a distributed digital currency. The purpose of the proposed bill is that Bitcoin and other digital assets are considered a currency for the taxation purpose.
The State of Israel has the ability to be among the leaders in the field of digital currencies, if only it recognizes the use of the blockchain as a currency for everything,” said K Forer after the bill was submitted. Crypto regulations in most countries are still in a grey area.
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