Israel: Cryptocurrency Guidelines

The Israel Tax authority has published guidelines that hurt the chance of the industry developing, tax practitioners have warned. Unlike a regular currency, the Israel Tax Authority will regard an increase in the value of a cryptocurrency as a capital gain rather than an exchange fluctuation, making it subject to capital gains tax. Individual investors will not be liable for value-added tax, but anyone engaging in cryptocurrency mining will be classified as a “dealer” and subject to VAT, according to the circular. More info here.