Your money stays available
Tax is calculated with each sale and collected at withdrawal or at the monthly settlement, instead of after every trade.
Crypto tax in Israel
Tax is calculated automatically.Your funds stay available for trading.
Every sale is recorded immediately. Tax is withheld on withdrawal or at the monthly settlement, after realised gains and losses are offset.
Open a trading accountAutomatic FIFO calculationLosses offset before withholdingForm 867 for the tax year
How automatic tax withholding works
Three steps, from the trade to the Tax Authority.
- 01
Every sale is recorded
Acquisition cost, proceeds, trading fees and the gain or loss are recorded using FIFO.
- 02
Gains and losses are offset
Realised losses offset realised gains before the withholding amount is calculated.
- 03
Withholding and reporting
Tax is withheld on withdrawal or at monthly settlement, and Form 867 summarises the tax-year activity.
Tax is handled without interrupting your trading
Your funds stay available
Tax is not withheld after every sale. Your balance stays available until withdrawal or monthly settlement.
Offset before withholding
Realised gains and losses are offset, and tax is calculated only on the remaining taxable balance.
Even without an ILS balance
At monthly settlement, Coinbox automatically converts only the minimum amount needed for withholding.
Amounts already withheld stay in the calculation
Amounts already withheld reduce the outstanding tax balance, so the next withholding covers only what remains.
Straight from Coinbox
How automatic tax withholding works at Coinbox
Coinbox calculates the tax effect of each sale as it happens, but does not withhold tax after every trade. Withholding happens at withdrawal or at the monthly settlement, after offsetting the realised gains and losses recorded in the same tax year. That keeps more money available for trading until the withholding date.
Updated 28 August 2026
Offset before withholding
Realised gains and losses in the same tax year are offset, and withholding is calculated only on the taxable balance.
Even without a shekel balance
At the monthly settlement, if there are not enough shekels in your account, Coinbox automatically converts only the minimum amount needed for the withholding.
Frequently asked questions
What is tax withholding at source at Coinbox?
Coinbox calculates the tax liability on taxable activity in your account, withholds the amount and reports it under the withholding-at-source mechanism.
Which actions are handled automatically?
All taxable actions carried out in your Coinbox account are recorded in the system and included in the calculation and withholding under the law.
Is tax withheld after every sale?
No. The tax effect is calculated with each sale, but the money stays available in your account until a withdrawal or until the monthly settlement of the month that has closed.
Which method is used for the cost basis?
The calculation uses the FIFO method. The units bought first are the ones treated as sold first when calculating the gain.
Are losses offset automatically?
Yes. Realised losses recorded at Coinbox in the same tax year are offset against realised gains before the withholding is calculated.
What happens if there was a gain and then a loss in the same month?
If the gain and the loss were realised before the monthly settlement, they are offset before withholding. The tax is then calculated on the remaining taxable balance, not on the earlier gain alone.
What is the tax rate when the cost basis is known?
For individuals, the tax mechanism applies a rate of 25% to the real capital gain, based on the data recorded at Coinbox.
What happens when the cost basis is not known?
When there is no verified cost basis, the withholding rate is 25% of the proceeds. In the deposit routes, Coinbox lets you attach information and documents to record the cost basis.
What if I had activity outside Coinbox?
Activity outside Coinbox is not captured automatically. When transferring crypto, you can provide your transaction history and cost-basis documents and, where needed, include the external activity in your annual report.
When is the tax actually withheld?
The liability updates with your sales. The withholding happens at withdrawal or at the monthly settlement of the month that has closed.
Do I need to set shekels aside for tax?
You do not need to set aside a dedicated shekel balance in advance for the monthly settlement. If there are not enough shekels in your account at the settlement, Coinbox automatically converts only the minimum amount needed for the withholding.
How does Coinbox treat tax that was already withheld?
All tax already withheld is recorded in your account and deducted from the tax balance. The next withholding covers only the amount still required by the activity recorded at Coinbox.
How do I get Form 867?
Coinbox issues Form 867 for the tax year. The form brings together the data relevant to the tax withheld at source and can be handed to your accountant.
How do trading fees affect the taxable gain?
Buy and sell fees are part of the calculation: the buy fee is added to the purchase cost and the sell fee reduces the proceeds.
Trade. Tax is handled.
Open a Coinbox account and get FIFO calculation, loss offsetting and automatic tax withholding in one account.
Open a trading account