JERUSALEM—In a newly proposed bill, the Israeli Knesset outlined several changes related to the taxation of Bitcoin. Instead of viewing bitcoin as an asset and taxing its sale with a 25% capital gains tax, the new rules may recognize it as a currency.
Four representatives of the Yisrael Beiteinu party presented the new bill.
Currently considered and recognized as an asset, cryptocurrencies such as Bitcoin in Israel are subject to capital gains tax (25%). Tax credits are only provided for short-term lenders and certain bond activities (15%), BlockStat explained.
Four representatives of Yisrael Beiteinu, however, said that the perception of virtual assets requires re-examination. They justified that while cryptocurrencies are a relatively new concept, the Income Tax Regulation has not been changed for years and lags behind the emerging new digital reality, BlockStat said.