Post Election Tax Agenda
Leon Harris
The Israeli general election is over, the coalition building process has begun. Tax was not exactly the top issue. The Likud party election manifesto called for tax and VAT reductions over the long term without saying how. The Blue and White party manifesto proposes to encourage ... Read More
Category: General Business
12
Feb2019
On or around January 21 this year, the Israeli Tax Authority (ITA) saw fit to issue to many Israeli taxpayers demands to file “missing” online annual tax returns going back many years, typically 2008-2012.
This may be a nightmare scenario - being forced to find and report income and expense documentation ... Read More
February 12, 2019Leon Harris
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”. A recently ... Read More
February 12, 2019Leon Harris
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