Category: Israeli Corporate Tax Planning

20

Dec2016
An Israeli Court has just ruled, in the Kontera case, that an Israeli R&D company which bills a foreign related company on a cost plus basis must include the value of stock options in its operating costs (Kontera Technologies Ltd V. Tel-Aviv 3 Assessing Officer, Tax Appeals 40433-11-12 and 19259-06-13, ... Read More
December 20, 2016Leon Harris

14

Dec2016
The Israeli tax Authority (ITA) and Swiss Finance Ministry signed on November 27 a declaration of intent regarding the exchange of information about financial accounts. The aim is to enhance cooperation regarding the supply of information, “egalitarian enforcement” of taxation in Israel, truthful tax payment and limit black money. This is ... Read More
December 14, 2016Leon Harris

23

Nov2015
Last Thursday November 19, the Knesset finally passed the budget for 2015-2016 after reportedly addressing thousands of objections. Two laws were passed – Amendment 207 to the Income tax Ordinance, and a so-called Economic Efficiency Law. We review some of the tax measures.   Not Enacted: First, which proposals were NOT passed?  A ... Read More
November 23, 2015Leon Harris

30

Sep2015
Leon Harris How many homes can an investor own and still qualify for lower tax rates for passive income in Israel? Until recently, it was generally assumed that rental income from a handful of homes – say 5 or 6 -  may be considered passive, but any more may result in the ... Read More
September 30, 2015Leon Harris

30

Sep2015
On July 22, the Israeli government published a Bill entitled "Proposed Law to Reduce the Use of Cash" in an effort to tackle the black economy. Some of the proposals are far-reaching as summarized below. What is Proposed? According to the Bill, "cash" means Israeli banknotes and coins, and foreign currency. According to ... Read More
September 30, 2015Leon Harris

30

Sep2015
Leon Harris The Israeli Tax Authority (ITA) is sending out notices to growing businesses requiring them to report online all their purchases and sales for Israeli VAT purposes. This is known as detailed VAT reporting. The aim is to enable the VAT Authority to match up most of the purchases in ... Read More
September 30, 2015Leon Harris

30

Sep2015
Leon Harris Filling in tax returns is never a pleasure, but when it comes to annual deadlines, Israel is relatively civilized. There is no mad rush to file by April 15, unlike the situation in the United States, for example. On May 15, 2015, the Israeli Tax Authority (ITA) announced extended deadlines ... Read More
September 30, 2015Leon Harris

30

Sep2015
Leon Harris Forms are important and should be respected. Sometimes legislation drives the forms, sometimes they drive the law by stretching its meaning. There is no shortage of Israeli tax forms. As it is the tax return season, we discuss below two forms which usually take far longer than expected to ... Read More
September 30, 2015Leon Harris

30

Sep2015
Leon Harris Israeli lawyers and accountants will have to start applying "Know Your Customer" (KYC) procedures before accepting certain assignments, from September 2, 2015. This follows the passing of the Order For The Prohibition of Money Laundering (Duty of Identification and Recordkeeping by Business Service Providers to Prevent Money Laundering and the ... Read More
September 30, 2015Leon Harris

30

Sep2015
Leon Harris On April 2, the Israeli Tax Authority (ITA) published an aggressive draft Circular aimed at foreign online service companies. Main Issue: In the draft Circular, the ITA seeks to extend its jurisdiction and to start taxing foreign online service companies if their activities have an Israeli link. Currently, the generally accepted principle ... Read More
September 30, 2015Leon Harris