Tax / Taxation of Cryptocurrencies
Our firm’s Tax Department has proven capabilities in handling issues arising from economic and commercial activities with cryptocurrencies, such as Bitcoin and Ethereum, as well as NFTs (non-fungible tokens).
We are also proficient in handling the taxation related to a variety of digital currency issuance models—ICOs (initial coin offerings), IDOs (initial DEX offerings), and IEOs (initial exchange offerings).
We provide professional guidance based on wide and up-to-date familiarity with the evolving legislation and case law, as well as with trends in crypto taxation in Israel and around the world, including with regards to the various relevant regulatory authorities.
Thanks to our experience in the crypto sector, Dun’s 100 has ranked our firm for the third consecutive year as part of the leading group of Israeli law firms in the blockchain and digital currencies practice area.
Companies
We advise issuers of digital currencies on all stages of different issuance models (ICO, IDO, and IEO), plan tax structures, and provide ongoing advice on tax and other matters. We also offer guidance on the process of obtaining tax rulings regarding ICOs, as relates to all aspects of crypto-based economic activities. In addition, we provide representation before the tax authorities in relation to income tax, VAT, and various encouragement laws, such as preferred enterprises, preferred technological enterprises, etc.
Private Clients
We advise private clients engaging in crypto investment and trading on crypto taxation issues, and all tax matters involved in such investments. In addition, we assist clients with tax planning and with arranging the reporting and payment of crypto income, including retroactive reporting to long-standing investors, lowering fines, calculating capital gains, offsetting losses, etc. We also represent clients before the tax authorities with regard to these and other issues pertaining to cryptocurrency earnings.
Insights & News - Tax / Taxation of Cryptocurrencies:
Tax Aspects of Cryptocurrency-Based Compensation to Employees and Service Providers
The use of token-based compensation has grown in recent years. It is important to understand the tax aspects of such compensation, especially when a company is gearing up for a major deal.
Israeli Tax Proposals for Blockchain, First Steps to Approval
Adv. Harel Perlmutter, the head of our Tax Department, was interviewed by Bloomberg BNA following the release of the Israel Tax Authority's new draft plan for taxing ICOs.
Israel Seeks Tax on Bitcoin, Virtual Currency Transactions
Adv. Harel Perlmutter, Head of the Tax Department at Barnea, was interview by Bloomberg regarding a draft circular of the Israel Tax Authority on taxation of virtual currencies (bitcoins and the like). Harel commented that the draft imposes almost insurmountable restrictions on the use of virtual currencies in Israel, due to the liabilities and costs involved.
Tax / Taxation of Cryptocurrencies
Our firm’s Tax Department has proven capabilities in handling issues arising from economic and commercial activities with cryptocurrencies, such as Bitcoin and Ethereum, as well as NFTs (non-fungible tokens).
We are also proficient in handling the taxation related to a variety of digital currency issuance models—ICOs (initial coin offerings), IDOs (initial DEX offerings), and IEOs (initial exchange offerings).
We provide professional guidance based on wide and up-to-date familiarity with the evolving legislation and case law, as well as with trends in crypto taxation in Israel and around the world, including with regards to the various relevant regulatory authorities.
Thanks to our experience in the crypto sector, Dun’s 100 has ranked our firm for the third consecutive year as part of the leading group of Israeli law firms in the blockchain and digital currencies practice area.
Companies
We advise issuers of digital currencies on all stages of different issuance models (ICO, IDO, and IEO), plan tax structures, and provide ongoing advice on tax and other matters. We also offer guidance on the process of obtaining tax rulings regarding ICOs, as relates to all aspects of crypto-based economic activities. In addition, we provide representation before the tax authorities in relation to income tax, VAT, and various encouragement laws, such as preferred enterprises, preferred technological enterprises, etc.
Private Clients
We advise private clients engaging in crypto investment and trading on crypto taxation issues, and all tax matters involved in such investments. In addition, we assist clients with tax planning and with arranging the reporting and payment of crypto income, including retroactive reporting to long-standing investors, lowering fines, calculating capital gains, offsetting losses, etc. We also represent clients before the tax authorities with regard to these and other issues pertaining to cryptocurrency earnings.
Insights & News - Tax:
Tax Aspects of Cryptocurrency-Based Compensation to Employees and Service Providers
The use of token-based compensation has grown in recent years. It is important to understand the tax aspects of such compensation, especially when a company is gearing up for a major deal.
Israeli Tax Proposals for Blockchain, First Steps to Approval
Adv. Harel Perlmutter, the head of our Tax Department, was interviewed by Bloomberg BNA following the release of the Israel Tax Authority's new draft plan for taxing ICOs.
Israel Seeks Tax on Bitcoin, Virtual Currency Transactions
Adv. Harel Perlmutter, Head of the Tax Department at Barnea, was interview by Bloomberg regarding a draft circular of the Israel Tax Authority on taxation of virtual currencies (bitcoins and the like). Harel commented that the draft imposes almost insurmountable restrictions on the use of virtual currencies in Israel, due to the liabilities and costs involved.