https://www.coindesk.com/israel-confirms-will-tax-bitcoin-property/Israel's government confirmed Monday that it would treat bitcoin and other cryptocurrencies as a kind of property for tax purposes.
The notice confirms past indications that the Tax Authority will regard cryptocurrencies as "a property, not a currency", making it therefore taxable as such. The Authority's position was first detailed in a draft circular issued in January of this year.
The circular explains that profits from cryptocurrencies will be subject to capital gains tax at rates between twenty percent and twenty-five percent, while individuals mining or trading cryptocurrencies in connection with businesses must pay a seventeen percent value-added tax (VAT) in addition to capital gains tax.
Eventually, its noteworthy to mention that they are coming out with a position on what they want to do with crypto currency and I think taking a good look at this leave some grey areas left because they are making it sound as if they are doing crypto enthusiasts a favor by taxing them. What is here can be regarded as punishment. I am still comfortable with the capital gains tax which is on the high side but something affordable since its going to be from profit.
But this "while individuals mining or trading cryptocurrencies in connection with businesses must pay a seventeen percent value-added tax (VAT) in addition to capital gains tax." is the most ridiculous law I have ever seen to pay a cumulative of 42% as tax is not only high but be condemned by all well meaning stakeholders in the crypto industry in that part of the world. This would not only kill initiative, but would kill investment because when you consider the amount of risk you have to take to be involved in crypto and when that risk eventually paid off government is ready to take large chunk of it, then you stay away.