Israel Published Draft ICO Taxation Plan

Israel's authorities proposes to tax ICO with value-added tax
18 January 2018   563

The Israeli government published a draft plan, which described possible ways of taxing the ICOs profits.

The plan was published on Wednesday by the IRS. It proposes to tax the ICO with value-added tax (VAT). The document specifies that, according to the current legislation, goods and services offered to foreign citizens will not be taxed.

According to a report published on the official website of the IRS, cryptocurrencies in this plan are not directly affected.

In addition, the plan details the classifications of blockchain companies with an emphasis on the types of goods and services offered, as well as on what model of profit they use.

It also says that under current legislation, the subject of accounting regulation will be sales of tokens, the profit of which is more than 15 million new Israeli shekels ($ 4.4 million).

The amount of tax may change if the company determines its tax liabilities not during, but at the end of the year. 

In cases where the tax liability is determined on a cash basis, at the end of the year, the buyer or recipient of a service is a resident of Israel or vice versa, it is possible that the tax rate for the transaction will change according to the provisions of the VAT Law.

ICO Draft Taxation Plan

The document notes that investors selling already purchased to ICO tokens will also become subjects of taxation. Groups that trade on behalf of registered companies, especially for tax purposes, will be "classified and registered as financial institutions".

The plan emphasizes that in the future it can be changed. The IRS is awaiting public comment on the provisions submitted.

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Microsoft to Ban Crypto Ads in Bing Search Engine

Advertisements related to virtual currencies or promotion of fake/forged virtual currencies are now prohibited
17 May 2018   135

Bing is a very famous web search engine owned and operated by Microsoft. A couple of days ago Bing reported in its Blog that online fraud involving financial services became a serious problem recently. Bing published a list of policies to help ad providers meet approval and protect consumers and businesses from being victimized. The polices apply to all forms of currency including real and virtual currency.

Advertising for the following products and services is not permitted: Ponzi schemes, pyramid schemes, or other legally questionable business opportunities, particularly if returns on investment rely solely on adding participants to the scheme or the consumer must pay a subscription fee or buy a specific product to join, and the value proposition of doing so is undefined.

Bing Blog post

Bing now bans ads related to solicitation of funds except by recognized charities or organizations. Advertisements related to virtual currencies designed to facilitate illegal purposes, to avoid applicable taxes, money laundering, promotion of fake/forged virtual currencies are also prohibited. The full ban of such ads is expected in late June or early July.

Previously, we have reported that Facebook created a new policy that prohibits all advertisements for cryptocurrency and ICOs as part of an effort to improve the integrity and security of ads.