Israel Tax Office: Bitcoin property, not currency

Israeli tax officials have decided on the position on the crypto currency.

19 February, the Israeli tax authority published a professional circular (4 Adar 5768), which explains the country's tax policy with respect to crypto-currency in general and Bitcoin in particular.

The final tax circular is disappointing for miners

The circular is called final with respect to taxes on crypto-currencies. "For the purposes of income tax – in accordance with the circular … (Crypto-currency) … is an asset," the document says.

If the activity on the crypto-currency market of a particular user does not reach the size of the business, then it pays a capital gains tax.

If it comes to business, then the user will pay the same taxes as any other commercial activity.

Under such conditions, the miners find themselves in the worst possible position, since they will pay both for capital gains and VAT, which can raise their tax account to 42%, comments

Crypto-currencies in Israel are under pressure from the authorities. The head of the Securities Committee of Israel (ISA) Shmuel Hauser openly calls Bitcoin bubble.

Author: Evgenij Novožilov, Analyst Freedman Club Crypto News

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