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Israeli government deems Bitcoin taxable asset

The Israeli government has issued a notice to users of the digital currency to clarify tax guidelines that apply to them.

The Israel Tax Authority announced in its statement that the country’s central bank sis not see the virtual currency as a foreign currency and, therefore, its use would be taxed according to existing fixed tax rates.

The announcement reads as follows:

ʺBitcoin will be considered in accordance with the Income Tax Ordinance 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 will be taxed according to fixed tax rates”.

According to the Israel Tax Management, the profit of those engaged in the sale or purchase of a virtual currency will be based on the corporate tax rate. Any commercial sales of digital currencies or commercial transactions will be taxed according to value-added tax (VAT).

According to CoinDesk, a report on the fact that the Israeli government had begun to consider the possibility of taxation of Bitcoin-transactions was issued in September of 2013. A representative of the office said at the time that the authority had been interested in imposing a profit tax on the sale of Bitcoin, but it had been difficult to answer how to implement it.

Source: allcoinshome

  • January 27, 2017 4:30 PM MSK