Tax Authority mulls easing regulations for bitcoin traders

bitcoin

The Israeli traders can report their profits from transactions every six or 12 months, instead of monthly.

The Israel Tax Authority is pushing reporting concessions for capital gains from bitcoin trading. Sources inform "Globes" that at the Tax Authority's request, the addition of a duty to report transactions to the draft Arrangements bill is being considered. The proposal includes a regulation allowing a party selling bitcoin holdings to report capital gains on the sale of virtual currency to the Tax Authority once every six months (or once a year). If the regulation is not added to the Arrangements bill, the Tax Authority will back separate legislation on the matter.

The Tax Authority's proposal changes the existing rules requiring monthly reporting, so the regulation is designed to benefit currency traders.

The Tax Authority published a position paper two years ago stating that bitcoin was a capital asset, in accordance with the Bank of Israel's policy, and that profit on its sale was therefore subject to 25% capital gains tax, in contrast to exchange rate profits from other currencies, which are not taxable in Israel.

Published by Globes [online], Israel Business News - www.globes-online.com - on December 25, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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