Category: General Business

30

Nov2022
The new Israeli coalition government is still on the way, but Israel has been a member of the OECD since 2010 and members are supposed to apply OECD pronouncements under the 1960 OECD Convention. It is like EU membership minus a Brexit option. What does the OECD say? Why is ... Read More
November 30, 2022Leon Harris

08

Nov2022
Tax regulations have been issued which considerably expand the transfer pricing reporting requirements in Israel for multinational groups with entities in Israel and global revenues over NIS 150 million (Income Tax Regulations (Determining Market Conditions)(Amendment) 2022, KT 10339, September 22, 2022). This follows the enactment of amendment 261 to the ... Read More
November 8, 2022Leon Harris

08

Nov2022
A 15% minimum global corporate tax income tax rate will probably arrive in 2024, thanks to an initiative of the OECD called Pillar Two. To support this, US President Joe Biden told the UN on September 21: “We’re working to build a new economic ecosystem…where every nation gets a fair ... Read More
November 8, 2022Leon Harris

08

Nov2022
Returning residents who lived away from Israel for 10 years generally enjoy the same 10 year Israeli tax exemption for foreign income and gains as new Olim residing in Israel for the first time. But in the case of Israeli residential property, it can be a different story. The real estate ... Read More
November 8, 2022Leon Harris

08

Nov2022
The Israeli national labor court has now ruled that employees are taxable in full on the taxable “usage value” any use of a company vehicle, no matter how slight the benefit may be (Berliner Elevators Ltd vs. National Insurance Institute, 29703-01-21, July 3, 2022). Although this was a national insurance ... Read More
November 8, 2022Leon Harris

08

Nov2022
Autism or autism spectrum disorder (ASD) is said to be a developmental disability that can cause significant social, communication and behavioral challenges. The Israeli National Insurance Institute issued a new circular to branches across Israel and to medical teams  on August 15 regarding a streamlined procedure. This stipulates that a child ... Read More
November 8, 2022Leon Harris

08

Nov2022
The Israeli Supreme Court has now ruled that the foreign workers levy of up to 20% did not contradict Israel’s tax treaties nor the OECD model tax convention. A group of manpower employment companies had claimed that the levy was imposed on salaries paid to foreign citizens, not Israelis, and was ... Read More
November 8, 2022Leon Harris

08

Nov2022
It’s always a good idea to avoid mistakes, especially big mistakes. The English in Elizabethan times called it “being hoist by your own petard”. The Israelis call it a “work accident”. Let’s consider a recent reported case where the Israeli Tax Authority saw through the taxpayer’s tax planning (Sismop Technologies ... Read More
November 8, 2022Leon Harris

08

Nov2022
The Israeli Supreme Court has just ruled that borderline tax planning done by a taxpayer when selling his home only 2 days after finishing it was not artificial or fictitious. But even the judges were split 2-1. The case may be notable not only in Israel but perhaps also in other ... Read More
November 8, 2022Leon Harris

08

Nov2022
Amazingly, the Israeli Tax Authority (ITA) has now clarified how to get round a negative Supreme Court judgement relating to trusts, in a Tax Ruling (3399/22 of August 9, 2022). The issue: Israeli real estate gains are taxed and administered completely differently from other capital gains. The income tax law says that contributing ... Read More
November 8, 2022Leon Harris