Israel: Parliament considers law to exempt foreigners from crypto taxes

Even if several countries of the globe are resistant to the emergence of cryptos, some are a little more favorable to it. This is the case of the Israeli state, which seems to be multiplying initiatives to strengthen the attractiveness of cryptos on its territory.

A bill favorable to the emergence of cryptos in Israel

In Israel, the proposed rules to frame the development of cryptos maintain their momentum. Indeed, in the Knesset, the Israeli National Assembly, a bill has just been submitted to this effect.

The measure is carried by the parliamentarian Dan Ilouz. It particularly targets foreigners active in the sale of cryptos. It proposes the non-taxation of gains made by foreign residents in the context of these activities.

This law project aims, concretely, for a tax exemption on crypto income made by foreigners. But the ambition of parliamentarians is much broader. This is certainly to offer tax advantages.

Parliament also wants to bridge the gap between crypto bonuses and stock options offered to employees. A means of promoting the integration of digital assets into their remuneration policy.

To achieve this, the bill proposes to reduce cryptocurrency bonuses by half. These would then drop from the current 50% to around 25%. A possibility, amended by a large majority of the coalition of deputies favorable to the regime in place.

According to analysts, this clear support suggests that the Knesset could pass the bill. If so, it would likely mark a crucial step forward for the Israeli crypto industry.

Indeed, the planned measure should enhance the attractiveness of the Israeli crypto market. This, by stimulating foreign investment in the sector. Which, in time, could foster technological innovation and the development of blockchain technology in the country.

In addition, the bill would alleviate the concerns of local crypto industry players. Many are concerned about the Israel Securities Authority’s (ISA) plan to integrate digital assets with securities. Concerns which should settle down since the legal initiative introduces the concept of “digital currency» as a separate item.