On August 6, Haaretz, the Israeli newspaper, reported that BTC investors in Israel cannot pay taxes because banks do not accept deposits received from cryptocurrencies.
Cryptocurrency taxes in Israel
Bitcoin is not recognized as a currency in Israel, as banks are concerned about the risks of money laundering and terrorist financing through cryptocurrencies. Therefore, individuals are required to pay the state 25% of the capital gains tax, and legal entities – income tax at a rate of 47%.
Thus, a vicious circle is formed: residents of the country must pay their obligations to the state, but they cannot do this because of the caution of financial institutions.
Also, news on cryptocurrency reports that, according to authorities, Israeli investors have not paid taxes on income from cryptocurrency tradingTrading
– is an economic term that means the process of independent trade, independent analysis of the market and the conclusion of trade transactions.Details in the amount of more than 300 million shekels (more than $85.7 million). However, it is possible that the real amount may be much larger.
In Israel, investors have no way to pay taxes on trade income with cryptocurrency. Recall that studies in 2019 showed that Bitcoin miningMining
– is a type of activity for creating new blocks in the Blockchain to ensure proper system operation. Details consumes more electricity than the population of Israel and Switzerland. Relevant data were provided by the analytical center of the University of Cambridge.
Editor: Pereyidenko Ihor