Tax on cryptocurrency transfers; transactions from unknown sources under government scrutiny

The Parliamentary Research Center announced in a report on the implementation of the “Tax on Speculation and Gambling” law that any transfer of crypto assets from an unknown source or outside of authorized exchanges to licensed exchanges will be subject to tracking and taxation. The aim of this measure is to increase financial transparency in the cryptocurrency market and prevent unofficial transactions.

According to this law, which was passed in July 1404, authorized exchanges are required to issue electronic invoices for all their transactions. These invoices include the identity information of the parties, the price and time of the transaction, and are considered the basis for calculating taxes.

After registration, the data related to each transaction is sent directly to the Tax Authority and included in the parties' files.

The new law defines four main types of cryptocurrency transactions: transactions on authorized exchanges, transfers from authorized exchanges to abroad, transfers from outside authorized exchanges to inside, and transactions completely outside authorized exchanges.

Under this classification, transfers of crypto assets from unknown sources or wallets outside authorized exchanges to official exchanges will be monitored and taxable.

If an electronic invoice is not issued for these transactions, the entire transaction amount, not the profit, is considered "incidental income" and is subject to tax.