The Israel Tax Authority is targeting cryptocurrency investors as dozens of Israelis who have cryptocurrencies received notifications from the watchdog, Globes reports.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
According to Globes, the watchdog also wants to tax crypto hodlers who do not trade at all. Inquiries have also been received by cryptocurrency exchanges not only in Israel but also around the globe.
Back in 2018, the regulator imposed a 25% capital gains tax on crypto investors if their activity does not turn into a commercial activity. In case the activity does become a business, proprietors are charged a two-stage corporate tax, or a marginal tax according to the individual tax brackets.
In September Globes reported, citing four representatives from the Yisrael Beiteinu party, a secular nationalist political party in Israel, that the country can classify bitcoin (EXANTE: Bitcoin) and other digital assets as a currency for taxation.
In August 2019, cryptocurrency traders from Israel filed several lawsuits against financial institutions due to the restrictions that had been imposed on their bank accounts before.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.