Category: Israeli Exempt Companies

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 a business ... Read More
February 12, 2019Leon Harris

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 tech enterprises ... Read More
January 27, 2019Leon Harris

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 Israel! Stock (share) ... Read More
January 27, 2019Leon Harris

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. double taxation. In ... Read More
January 3, 2019Leon Harris

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 cash limitations ... Read More
December 20, 2018Leon Harris

20

Dec2018
You might think nothing happened at the G20 summit a week ago because Trump ignored Putin, Saudia Arabia was sidelined and Britain is brexiting. In fact, the G20 is a major event at which the leaders of around 85% of the world economy issue directives on a host of economic matters ... Read More
December 20, 2018Leon Harris

20

Dec2018
The Israeli Supreme Court has just shot down the use of a company incorporated in Ramallah (Shai Tzmarot (Oranit) Vs VAT Director Petach Tikva, Civil Appeal 1609/16, handed down November 1, 2018). This was done using the old UK tax concept of central management and control, but with a Hebrew ... Read More
December 20, 2018Leon Harris

20

Dec2018
The Israeli Tax Authority (ITA) has just issued new operating instructions (14/2018 of November 11, 2018) on how to deal with inventory destruction. The unstated aim is, of course, to make sure the inventory doesn’t vanish into thin air as illicit untaxed gain. According to the Circular, inventory sometimes accumulates and ... Read More
December 20, 2018Leon Harris

20

Nov2018
The Bank of Israel Bank Supervisory Department published draft new instructions to Israeli banks regarding checks required to ascertain whether money was properly taxed. In 2016 certain tax offenses were made “predicate offenses” under Israel’s anti money laundering rules, which Israeli banks administer. In other words Israeli banks were turned ... Read More
November 20, 2018Leon Harris

19

Nov2018
Those that look ahead, get ahead. Business profits and taxes need to be monitored regularly, especially towards the tax year-end of December 31. Below is a starter list of planning tips to check out On The Business Side: First, a business plan. What are your goals and are you achieving them? What is your competitive ... Read More
November 19, 2018Leon Harris