Category: Israeli Corporate Tax Planning

30

Jan2020
The Israeli Tax Authority (ITA) has found a controversial back-door way of retroactively reducing the ten year Israeli tax exemption for foreign income of Olim, in the tenth year. They did so by issuing new “reportable tax positions” on December 30, 2019 regarding 2019 onwards. Does the Israeli ... Read More

30

Jan2020
The Israeli Tax Authority (ITA) has issued a new generic Ruling allowing a streamlined procedure for B2B (business to business) e-commerce supplies by foreign businesses to Israeli businesses (Ruling 6369/18). The tax or lack thereof on e-commerce is a hot topic. On June 21 this year, the US Supreme ... Read More

06

Sep2019
Calling all Brits! Wondering what the future holds? You are invited to our upcoming seminars - “Israel InSight”. Discover what hope and inspiration Israel offers Olim and other insightful people. Sep 18 6.30 pm - Manchester “The Shrubberies” / Sep 19 6.30 pm - London ... Read More

18

Apr2019
On April 11, Israelis and others were riveted to their TV screens and YouTube as the Beresheet spacecraft  reached the Moon and nearly landed successfully. This was a major achievement and nobody was hurt. Beresheet means in the beginning. An early question coming to mind is if Bereshhet had made ... Read More

12

Feb2019
We all know that the Boston tea partygoers believed they should not pay taxation without representation. But now that democracy has arrived in the USA and most other countries, what (if anything) motivates us to pay taxes? The OECD refers to this motivation to pay tax as “tax morale”.  ... Read More

12

Feb2019
After much debate, the Gemachim Law was passed by the Knesset and published on January 13, 2019 (Book of Laws 2782). A Gemach is a Jewish free-loan fund which subscribes to the positive Torah Commandment regarding lending money (Exodus 22:24) and the Torah prohibition against charging interest  (Leviticus 25:37). That is unless ... Read More

27

Jan2019
Israel is a lot less taxing than it used to be. Following is a summary of the Israeli rates and tax brackets for 2019. Businesses: The regular company tax rate is 23%. The regular dividend tax rate is 30%-33% for 10%-or-more shareholders, 25%-28% for other shareholders, resulting in a combined tax burden on distributed corporate profits of 42.25%-48.41%, subject to any tax treaty. Preferred income derived by preferred industrial and ... Read More

27

Jan2019
There has been high drama in the stock options world. The Israeli Tax Authority (ITA) issued a Circular which appears to aim at exits – IPOs and takeovers – but largely misses. But the ITA also sneaked in a Ruling which appears to encourage Yerida - emigration from ... Read More

03

Jan2019
When US multinationals buy out the shareholders of an Israeli tech company, they often don’t realize that moving the technology out the company subsequently to a group IP affiliate will trigger Israeli tax. That is in addition to any Israeli tax already paid by the selling shareholders, i.e. ... Read More

20

Dec2018
On January 1, 2019 the use of cash to pay for things will become limited. The aim is to curtail the unofficial cash economy. The Israeli Tax Authority (ITA) has just published guidance on how this is meant to work (ITA Circular 17/2018 of December 4, 2018). The basics: The ... Read More

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