Category: Israeli Exempt Companies

15

Nov2018
Pension contributions are important in providing for our retirement years. Below is a brief overview of Israeli tax law rules for 2018. Types of Members The tax law distinguishes between “Privileged” and “Non-privileged” members of a provident fund, who may also be employed or self-employed. A privileged member is one who contributes at ... Read More
November 15, 2018Leon Harris

22

Oct2018

Your Taxes: Faster Flips

In October 2018, the ITA published a new fast track procedure for cases where the shareholders of an Israeli company wish to flip it. That means putting a foreign parent company (“ParentCo”) above the Israeli company. This happens quite often, especially in the hitech sector. For example, a US pension fund ... Read More
October 22, 2018Leon Harris

22

Oct2018
The Israeli Tax Authority has just backed down on a problematic reportable tax position for certain investment funds. But the underlying tax exposure remains. What is a Reportable Tax Position? A reportable income tax position is a position contrary to a position published by the ITA by the end of the year concerned if the tax advantage exceeds NIS 5 million in the tax year ... Read More
October 22, 2018Leon Harris

22

Oct2018
Does it seem like the Israeli Tax Authority (ITA) behaves like Big Brother taking your hard-earned money? Do you want to see the tables turned? If so, your wish has just been granted. It turns out the antidote is an even Bigger Brother, in this case, the OECD. which has ... Read More
October 22, 2018Leon Harris

22

Oct2018
The Israeli Supreme Court has just turned down not once but twice an appeal against the refusal of the District Court to allow a foreign tax credit in a case involving a US LLC. The result is double taxation. The taxpayer is upset. What went wrong? Background: A Limited Liability Company (LLC) ... Read More
October 22, 2018Leon Harris

17

Sep2018
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 Court ruled in the ... Read More
September 17, 2018Leon Harris

17

Sep2018

Your Taxes: Time to repent

If have a skeleton in your closet and need an Israeli tax amnesty, you have only three months until the end of 2018 to request it on an anonymous basis from the Israeli Tax Authority. And it takes time to prepare. Anyone applying for tax amnesty in 2019 will be at ... Read More
September 17, 2018Leon Harris

17

Sep2018
The Israeli Tax Authority recently published a series of reminders that businesses in Israel must keep proper account books. Approved Israeli software or printed books must be used – not Excel, Word, QuickBooks or Sage. Otherwise, the Israeli Tax Authority (ITA) not only levies fines, it can also estimate taxable income, ... Read More
September 17, 2018Leon Harris

17

Sep2018
Entrepreneurs across the start-up nation dream day and night about their multi-million dollar exit. Serial exiters know it isn’t so easy. Exit deals take on a life of their own, especially if you don’t plan ahead and build in some shock absorbers too. One of the reasons is that even ... Read More
September 17, 2018Leon Harris

20

Aug2018
When Paul Simon sang the hit Slip Slidin’ away, he had in mind a girl called Delores. When the OECD recently published a report on intangible assets sliding away, they had in mind Dollars and Euros (Guidance for Tax Administrations of the Approach to Hard-to-Value Intangibles, June 2018). The report clarifies certain ... Read More
August 20, 2018Leon Harris