How do you report crypto gains to the Israel Tax Authority?

The short answer

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.

In brief

Within 30 days of each sale: Form 1399(י) and an advance payment, under section 91(d)
Grouping trades: A month’s transactions can be reported as one
Annual return: Form 1301 for an individual, form 1214 for a company
What to prepare: Full trading history from every exchange
Shekel conversion: At the value on the day of each trade
No income tax file: Open a type 93 file, with no advances and no capital declaration

What do you need to prepare first?

Every report rests on a complete trading history from every exchange where there was activity, not only the ones where a gain was made.

The calculation needs the acquisition date and original price of each unit sold, so a partial history produces a wrong result even when the sales themselves are fully documented.

Each trade is converted to shekels at its value on the day of the trade, not at the rate on the reporting date. Income Tax Circular 05/2018 requires keeping documents that record the purchase, the sale and the holding period.

Which forms do you report on?

Under section 91(d) of the Income Tax Ordinance, a report of the capital gain or loss is filed and an advance on the tax paid within 30 days of each sale. According to the Tax Authority’s Q&A, sales of digital assets are reported on form 1399(י), and all of a month’s transactions can be grouped and reported as one.

At the end of the year an individual files an annual return on form 1301, in which form 1399(י) is part of the online return’s transmission. A company files an annual return on form 1214, with form 1399(ח).

Form 909 is not a reporting form: it is an individual’s request to pay the tax out of money that came from virtual currencies, where an Israeli bank refused to accept it.

What is the order of steps?

First, consolidate the trading history from every venue. Then calculate the gain or loss on each sale, including shekel conversion, separating the inflationary part, and offsetting losses.

A person without an income tax file opens one and states that it is for reporting sales of digital assets. A file of type 93 is then opened, which carries no obligation to pay or report advances and no capital declaration.

Crypto Tax performs the calculation automatically and produces a ready-to-file capital gains report, including Form 1399, leaving only filing it or handing it to a tax advisor or accountant.

Do you need a tax advisor or accountant?

Reporting itself does not require representation, but complex circumstances, such as activity at a scale that might be treated as a business, justify getting advice.

Tax advisors and accountants can manage a client’s reporting directly from their own Crypto Tax account, with no account needed for the client.

Sources

Last updated: 2026-09-28

This page is general information only and is not tax advice. For your own circumstances, consult a tax advisor or accountant.