The Israeli Tax Authority (ITA) is now requiring residents to disclose their cryptocurrency holdings for taxation purposes, according to a Globes report.
- According to the report, dozens of Israelis who own digital currencies have recently received notification from the ITA telling them they must fully disclose their assets for tax purposes.
- The ITA requested data from cryptocurrency exchanges in Israel and outside of the country in order to obtain the data and information regarding the accounts held by Israelis.
- For the information the tax authority applied EU Common Reporting Standards regulations and the Foreign Account Tax Compliance Act and shared U.S. Internal Revenue Service data with Israel, the report said.
- The ITA states investors in digital currencies are subject to a 25% capital gains tax as long as their activity does not turn into a commercial enterprise.
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