Social network company Spot.IM is planning to pay employees using Bitcoin, as reported by Israeli newspaper Calcalist. However, the firm is currently negotiating with the Israel Tax Authority to receive permission for the proposed payment method, along with the proper way of calculating exchange rates.Itay Bracha, Spot.IM’s legal representative, said that salary or benefit paid to an employee is subject to taxation in Israel. The company plans to open an account on a cryptocurrency exchange. Monthly salary will be converted to bitcoin and sent over to the employee’s digital account.
In order to ensure that bitcoin’s changing value doesn’t negatively impact the situation, the average of the highest and lowest BTC value on the specified day will be calculated and used as the exchange rate. However, the staff will have the option to choose between bitcoin or fiat money. They will even be given the chance to receive half of the payment in BTC.
Spot.IM employees are reportedly happy with the ongoing discussion since the high conversion fees will be covered by the company. Apart from net income, pension funds or other benefits won’t be transferred using bitcoin.
On February 2018, Israel Tax Authority announced that cryptocurrencies are assets that are subject to capital gains tax. Thus, employees will need to pay a 25% tax in case they earn gains from Bitcoin…
Read Full: Israeli Firm Seeks Tax Authority’s Permission to Pay Employees in Bitcoin
