Israel Published Cryptocurrency Decree Draft
February 22, 2018
The Tax Authority of Israel has released a document with details of a bill targeted at fixing the status for Bitcoin and altcoins within the country’s territory.
The paper was published on Sunday and will stay available for public discussion for two weeks since that moment. Once this period expires the regulator is expected to change some points with regard to the users’ remarks.
Among the matters the document covers there is a crucial rule for businesses engaged into cryptocurrency turnover:
“A person whose income from the sale of tokens reaches the level of a business, his income will be classified as a business income and it will be subject to tax rates under sections 121 or 126 of the ordinance”.
It is to be clarified that the document considers bitcoin as owner-assigned property rather than currency or payment means. Thus transactions involving bitcoin and other coins will be treated as barter ones and assessed by exchanged assets value.
“The Tax Authority is monitoring the technological developments and is working to provide an answer regarding the tax implications of virtual currency activity and the issue of digital tokens, thereby increasing the certainty and tax transparency of those operating in the field”, as the head of the authority Moshe Asher noted.
Last year the Israeli Central Bank declared, it was considering own state cryptocurrency with the view to increase transaction rate and reduce the volume of money in the economy.