A new bill, regarding the treatment of Bitcoin as a currency, has been proposed by the lawmakers of Israel the country’s parliament Knesset.
Globes, a local media outlet, published a report stating that on September 22, four regulators proposed an Income Tax Ordinance bill notifying that instead of treating Bitcoin as an asset, the country should treat it as a currency.
Four Legislators Presented Bill
MK Oded Forer, Yevgeny Soba, Yulia Malinovsky and Alec Kushnir are the four legislators from the Yisrael Beiteinu political party that presented the bill in the Israeli parliament.
Through their proposed bill they have asked the government to make some changes in crypto taxation. One of the changes mentioned in the bill includes amending the existing taxation law of the country.
According to the recent law, digital assets like bitcoin (BTC) is treated an asset, but in the proposed bill, the regulators have asked the parliament to treat it as a fiat currency for taxation purposes.
The bill further indicates, “The regulatory reality in Israel is not adapted to the existing reality in the field. [Digital currencies] will continue to be a growth engine that allows the Israeli high-tech industry to flourish and develop.”
Israeli Citizens Pay Tax Of 25 Percent On Cryptos
In Israel, sold Bitcoins and BTC converted into cash attracts a capital gain tax of 25 percent, because presently, it is being treated as an asset only. But the short-term BTC lenders and people involved in bond-related activities have to pay a capital gain tax of 15 percent.
In the year 2019, Israeli citizens, whose income was less than $22,000, on average had to pay a tax of 10 percent.
The 10 percent tax on income gives hope to legislators that their proposed bill might get approved.
Israel is the country that has always supported the well-developed technology industry. Recently, while appreciating Israel for showing interest in technological development, MK Forer said that especially during the time of this pandemic, the country can lead the world in crypto-based payment.