Israeli tax authorities to set regulations for cryptocurrency activities

This move comes in the light of the fact that the legal situation of Bitcoin has always been the cause of concern in some countries around the world. The Israeli authorities have finally stated their position on the cryptocurrency, and merchants will now be able to manage their tax returns in the “digital asset industry”.

However, according to The Merkle, some users expressed their preoccupation about the restriction clauses in the document, alleging that the usage of digital assets in the country will result in high fees.

Furthermore, the document expressed that companies will not be able to explicitly label their payments received on Bitcoin, but as an agreement between both parties. Tax authorities are aware of how difficult is to make records on the cryptocurrency world, but their idea is to record everything on paper, bank reports, and screenshots every time a transaction is performed.

Users will have to pay taxes from their profits in Israeli currency, up to 25% of the total amount of each Bitcoin sale. Also, all cryptocurrency related operations with a profitable end, (like mining) will enter in the “business category” and consumers will have to charge their clients a tax of 17% that will be sent to the government.