The new crypto bill, which has advanced through the initial stage, could level down crypto taxes for foreigners as a major tax policy reform.
Israel had progressed on a major crypto bill that could bring an important tax policy reform in the future. The main takeaway from the bill is crypto taxes, with the target being foreigners.
Foreigners in the country could seek an exemption from crypto taxes if the bill becomes a reality. The reduction would be on account of capital gains arising from digital assets. Crypto bonuses in the form of employee stock options would also see their taxes reduced from 50% to 25%.
The crypto bill officially states, “Despite the growth potential of Israeli companies in the field, the regulatory reality in Israel is not adapted to the digital currency industry. Therefore, it is proposed to make a number of legislative amendments that will reduce the regulatory gap.”
Dan Ilouz, who sponsored the bill, was confident of the full support of the ruling coalition government. The crypto industry in Israel was also appreciative of the bill. It welcomed the government’s openness to the crypto industry. The Israeli Crypto Companies Forum (ICBW3) was appreciative and hopeful of Israel attracting crypto firms.
On the sidelines, the Bank of Israel has been suggesting supporting CBDCs, but they haven’t made a major decision. With the term ‘digital currency’ being used in the crypto bill, regulators could refrain from treating crypto as securities. But any official statement hasn’t been made so far.