Category: Israeli Exempt Companies

07

May2020
The Israeli Tax Authority opened their website on May 6, 2020, for the second round of grants for freelancers, and has promised to do so for company owners on May 18 (everyone wishes it were sooner). Here is the link to make a grant application: https://www.gov.il/he/service/grant-self-employed-persons-for-corona-period-2 You ... Read More

18

Mar2020
UPDATE APRIL 27, 2020 Last Friday (April 24) the Israeli government announced another series of economic measures to help with the coronavirus economic crisis, which are summarized herein. They include long awaited grants for company owners, among others, but with some stings in the tail. Retail shops: Most retail shops and hairdressers are ... Read More

18

Mar2020
The OECD and G20 issued a statement on January 30, 2020, agreeing outline for further negotiations and work on reforming the international tax rules for many larger multinational groups. This raises several issues. What are the likely new rules for multinationals? What will governments do with resulting tax revenue increases ... Read More

18

Mar2020

Is ESOP a Fable?

March 18, 2020
Israeli hitech employees are highly motivated people who regularly work wonders of a technological nature. Part of that motivation comes from employee share option plans (ESOPS) which may provide a tax break if things go well in the tech company concerned But on the tax side, there have been ... Read More

18

Mar2020
The Tzfat Magistrates Court has just ruled that a lien (bank freeze) slapped on an unsuspecting taxpayer by the Israeli Tax Authority (ITA) was against the law and defamatory. The ITA was given 30 days to pay damages and costs!! (Case 2692-08-18 issued February 16, 2020). This case will be of ... 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

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

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