Israeli parliament approves bill to exempt non-residents from cryptocurrency taxes

The initiative is designed to increase the investment attractiveness of the country

06.07.2023 - 12:35

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What’s new? The Israeli Parliament (Knesset) has passed in the first reading a bill on full tax exemption for foreign citizens on cryptocurrencies. In addition, the document provides for a tax reduction from 50% to 25% on the sale of crypto options for employees of affiliated companies and introduces a distinction between the terms “digital currency” and “security.”

Bill on the Knesset website

What else is known? According to Deputy Dan Illouz, the bill aims to balance the situation and eliminate the discrimination in taxation associated with the fact that previously employees of crypto companies had to pay double the option tax compared to employees of the traditional high-tech industry. In addition, prior to the amendments, foreign residents did not have the same benefits in the blockchain sector as classic investors. Illouz added that the proposal already has the support of the Israeli government.

In January, the Israel Securities Authority (ISA) proposedincluding digital assets in laws governing securities, joint investments and investment consultation, marketing, and portfolio management. The amendments defined cryptocurrencies as a “digital representation of value used for the purpose of financial investment, and can be transferred and stored electronically by using distributed ledger technology or another technology.”

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