The Tax Authority of Israel moves to start taxing cryptocurrencies…
The Israeli government has ruled that cryptocurrencies such as Bitcoin are to be subject to taxation, like any other currency.
The confirmation came on Monday, with a notice from the country’s Tax Authority determining that cryptocurrencies will be regarded as “a property, not a currency”. That, in turn, subjects them to local taxation. In particular, to the country’s captain gains and value added taxes.
This is likely to be a growing trend in countries around the world, where legislatures are looking to add regulation where they can to cryptocurrencies, and to ensure they get their slice of the proverbial pie.
In the case of Israel, thus far it’s just published a “professional circular” on the matter – that you can read here – and the tax ruling hasn’t come into force. But it’s now just a matter of time, and it’s likely other countries will follow suit.