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September 26th 2020
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.
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 the way digital assets activities are taxed 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 crypto-assets is 25% in the country.
Under the ordinance, cryptocurrency is considered an asset. The and conversion of crypto assets in fiat currency are subject to capital gains tax. Currently, the tax on most capital gains in the country is 25%. However, section 91 of the Income Tax Ordinance provides relief in the taxation of capital gains from short-term lenders or non-CPI linked bonds, which are taxed at only 15%. 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.”
The bill seeks to put crypto-assets under currency for taxation purposes.
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.