Israel’s parliament to vote on easing cryptocurrency taxation

Four members of the Israeli Knesset have proposed considering new amendments to the country’s Tax Code. They propose dropping Bitcoin and other cryptocurrencies from capital gains taxation, according to Globes.

“The regulatory situation in Israel is not prepared for the reality in this area. [Digital currencies] will remain the engine of growth that will allow the high-tech industry to develop and prosper,” according to the explanatory memorandum to the bill.

In 2018, the Israeli Tax Authority equated cryptocurrencies with financial assets, obliging individual investors to pay capital gains tax at 25%.

If the law is approved, cryptocurrencies will be taxed at lower rates.

In 2019, for individuals with income below 75,720 shekels ($21,780), the rate stood at 10%.

One of the bill’s authors also urged the Knesset to consider blockchain technology as a solution for digital payment options during the pandemic. Earlier, the legislature had imposed a quarantine due to rising COVID-19 infections.

Back in 2018, Israeli authorities announced decisive measures against tax evaders hiding income from digital asset transactions.

In 2019, many Israeli crypto investors faced tax payments problems due to banks’ refusal to accept funds derived from digital asset transactions. The Bitcoin Association of Israel, through the courts, demanded that banks disclose their policy on this issue.

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