The government of Israel confirmed on Monday that bitcoin and other crypto-currencies will be treated as property in taxation.
The crypto currency will be treated "as property, not as a currency," the tax authority said, this would make it possible to tax this asset. For the first time, the Office detailed its position in the circular, which was released in January this year.
In the circular it is reported that the profit from the crypto currency will be taxed on capital gains with a rate of 20-25%, while the miners and crypto-currency traders will be subject to value added tax with a rate of 17%.
The government of Israel is exploring the possibility of taxation of crypto currency since the beginning of 2013. Today, the authorities continue to develop a legislative framework that regulates this area.
Recall that in January, the Internal Revenue Service published a document describing the potential ways of taxing the ICO. One of them was the installation of a threshold for a minimum income from the sale of tokens, thanks to which the tax can be initiated.