Questions and answers on crypto tax
A direct answer to every question, with a link to the Tax Authority’s own source.
Crypto tax
- Do you pay tax on crypto in Israel?Yes. The Israel Tax Authority treats a digital coin as an asset rather than a currency, so a gain realized on selling it is subject to capital gains tax in Israel.
- How much tax do you pay on crypto profit in Israel?An individual pays 25% on the real capital gain, and a company is charged that tax year’s statutory corporate tax rate.
- Is swapping one crypto for another a taxable event in Israel?Yes. The Israel Tax Authority has ruled that exchanging one digital asset for another is a sale subject to capital gains tax, even when no fiat money is received.
- Do you pay tax in Israel on crypto traded on a foreign exchange?Yes. An Israeli resident is taxed in Israel on income that arises outside Israel as well, so trading digital assets on a foreign exchange is taxable in Israel.
- Do you have to report crypto if you have not sold it?Not for holding alone: buying with fiat money and holding are not taxable events, and capital gains tax arises only on a sale, which also includes swapping for another digital coin and paying for goods or services with a coin.
- How are staking rewards and airdrops taxed in Israel?The Tax Authority has published no specific position on staking or airdrops, but every rule it has published for coins received (from mining, as salary or as payment) taxes them as income on receipt at fair value, which becomes their cost when sold.
Reporting to the Tax Authority
- How do you report crypto gains to the Israel Tax Authority?Each sale of a digital asset is reported on form 1399(י) within 30 days together with an advance payment, and the whole year’s gains are reported in the annual return: form 1301 for an individual or form 1214 for a company.
- How is the shekel value of a crypto trade determined?Every digital-coin trade is measured at its fair value in shekels at the time it was made, and the capital gain is the difference between the proceeds and the original price, with the part due to the rise in the Consumer Price Index separated out.
- What records should you keep for crypto tax?Keep a record of every purchase and sale, including its dates, proceeds and holding period, and the bank statements the money passed through, because Income Tax Circular 05/2018 requires the reported income to be proven when the assessing officer asks.
- When is the deadline to report crypto gains in Israel?The law sets 30 April after the tax year for the annual return, or 31 May for those required to file online, and for tax year 2025 the Tax Authority extended the deadlines for individuals to 29 May 2026 and 30 June 2026 respectively.
- Can you offset crypto losses against gains in Israel?Yes. A capital loss on selling a digital coin is offset against capital gains on any asset in the same tax year, and the remainder carries forward against capital gains only, provided a return was filed for the year of the loss.
- What happens if you did not report crypto gains in previous years?You can still file a return for a tax year that has already passed, and reporting on your own initiative is generally better than waiting to be contacted by the Tax Authority.
- How does crypto reporting differ for an individual and a company?An individual pays up to 25% on the real capital gain and reports on form 1301 with form 1399(י), while a company pays that tax year’s corporate tax rate, 23% as of 2025, and reports on form 1214 with form 1399(ח).
About Crypto Tax
- How does Crypto Tax calculate the tax on crypto?Crypto Tax matches every sale to purchases of the same coin in the order they were made (FIFO) across all your exchanges together, converts every trade to shekels, separates out the inflationary part using the index, offsets losses and applies the individual or company tax rate.
- Which exchanges does Crypto Tax support, and how is the history imported?Crypto Tax supports Bit2C, Binance, Kraken, Bybit, Coinbase, Bitget, Gate.com and Crypto.com Exchange today, by uploading the exchange’s export file or connecting a read-only API key, and combines them all into one calculation.
- What does the Crypto Tax report include, and who files it?For every tax year Crypto Tax produces a completed form 1399 with an appendix setting out every sale, a summary PDF and a CSV of every trade, and the filing with the Tax Authority is done by the filer or their tax advisor or accountant.
- Which tax years can Crypto Tax report?Crypto Tax produces a report for every tax year in which the imported history has a sale, a conversion or income, from previous years up to the current one, and you buy one tax year report for each year.
- How much does a crypto capital gains report cost?With Crypto Tax you pay per tax year report: one report for each tax year, regardless of how many trades or exchanges it covers, the price per report falls the more you buy in one purchase, and VAT is added at checkout.
- How do tax advisors and accountants use Crypto Tax?A tax advisor or accountant opens a Crypto Tax account that goes through a short verification, adds clients to it, individuals or companies, who need no account of their own, and generates a capital gains report for each from the office’s single balance of tax year reports.
- Is it safe to connect an exchange API key to Crypto Tax?Yes, when the key is created read-only: such a key can read the account’s history but cannot withdraw or move funds, Crypto Tax refuses a key the exchange reports as able to withdraw, and the key is stored encrypted.
- How does Crypto Tax protect my data?Crypto Tax keeps your data on EU servers and your files and backups in Israel, encrypts it in transit and at rest, requires a one-time code on every password sign-in, does not sell your data or submit anything to the Tax Authority, and lets you export your data and delete your account from Settings.
This page is general information only and is not tax advice. For your own circumstances, consult a tax advisor or accountant.