Israel’s government proposed draft regulations on 21 November 2024 to impose withholding tax on digital asset transactions, including cryptocurrencies, tokens, and non-fungible tokens (NFTs).
A recent ministerial memorandum clarified that digital assets will be classified as capital assets, not currency. Only currency issued by a foreign monetary authority will be qualified as a digital asset. No capital gains tax (CGT) exemption will apply even if the digital asset is legal currency in another country.
Under the proposed amendments, individuals will pay a 25% CGT on digital asset sales, while corporate entities will pay a 23% CGT.
If approved, the regulations are set to take effect on 1 July 2025.