Israel can ease the tax burden on crypto traders

[Paha87]

At an event in tel Aviv, Israel's Deputy Director General of the tax authority said that "the Agency will not insist on calculating the taxation of crypto traders based on FIFO (input and output)", which can simplify reporting for investors and lead to lower tax rates.

Roland Am Shalem, Deputy Director General of the Agency, explained that the exact calculation of taxes, which refers to the profits clearly accrued for each cryptocurrency, will be acceptable to the Israeli authorities. When asked whether the tax can be reported using a method other than FIFO, he replied: "Yes, we will not insist on FIFO, given the fact that you can identify currencies, the process may be different."

Jeremy Dahan, co-founder of Hello Group Software, offering stablecoin-backed diamonds, commented: "the value of the announcement is that the tax estimates in such a method are much lower than in the FIFO method, so even those who submitted reports will be able to submit revised reports that can reduce the estimate."

Gidi Bar Zachai, former Deputy Director General of the Israeli tax authority, added that"recognition by the tax authority in calculating the exact profits in digital currencies will lead to the true calculation of taxes, which will lead to profits of hundreds of millions of shekels for the state for many years."


Link to the source of information (Russian) - https://altstake.io/news/izraily-moghet-oslabity-nalogovuyu-nagruzku-na-kriptotreyderov