In a draft circular, Israel has announced that it will tax digital currencies like Bitcoin as assets instead of currency. This follows a similar decision in the U.S. Any profit from the sales of Bitcoin would be taxed. This means that a taxpayer could pay tax on the sale of the product or service that results in acquiring the Bitcoin, and again on any gain from selling the Bitcoin. https://taxes.gov.il/english/Pages/HomePageENG.aspx
