At the end of February, the TradingIL website published an up-to-date and in-depth guide on the taxation rules of NFT.
The guide deals with many issues in the field, including:
- Defining the activities in the field of NFT that require tax payment
- How is the amount of required tax determined?
- Payment methods and tax payment schedules
- Defining a tax event that requires reporting and how it differs from an event that does not require reporting
- A comparison of the taxation aspects between those who trade or invest in NFT and those who sell NFT creations that they have created
- Reporting and taxation rules for holding profits in the crypto wallet without transferring the profits to the bank account
- Recommendation on effective and convenient reporting methods
The guide is very user friendly as it deepens the subject gradually. The guide differentiates the reference to taxation depending on the nature of the reader’s activity, so for example there is a different reference to taxation on NFT creators and traders. The guide also presents additional taxes, which must be considered in the context of activity in the field, which may not be trivial when talking about NFT taxation such as social security.
Thanks to community member Amit Galili for sending the guide.
*We emphasize that the guide is not a substitute for consultation with a qualified person, but is intended to make the information accessible to the general public