Israel Tax Authority (ITA) is getting tough with the companies and individuals which evade reports of crypto earnings.
The news reports read that the regulator has sent notifications reminding the need to pay taxes to the individuals that can earn money from crypto investments and trading.
Specifically, ITA believes that often international trips, numerous real estates (houses, apartments) can indicate that an individual can have unreported crypto earnings.
For reference, Israel has classified cryptos as a financial asset rather than a currency. In this context, crypto trading activities are subject to 25-30% capital gains tax in Israel. Besides, local trading platforms dealing with digital assets also have to pay 17% VAT.
As commented ITA representative, the authority keeps looking for unreported earnings. Numerous tax cases have been launched against possible tax payment dodgers in the crypto market. Israel delayed approval of the AML rules this summer citing insufficient development of the proposed anti-money laundering.
Notably, Israel's tax authority stated in early 2018 that it would not revise the current taxation approved for the crypto segment in the near term.