Israelis in hitech and other industries are often relocated to work abroad. At what time do they become foreign residents? For many years this was a mystery. The Israeli tax law says that dropping Israeli fiscal residency takes at least four tax years – two years in Israel under 183 ... Read More
Category: General Tax
13
Nov2017
Israel has seen a wave of exit deals. Exits can be paid for with cash or shares of the acquirer, especially if the acquirer’s shares are publicly traded on a stock exchange – that is as good as cash isn’t it? Not if there is immediate tax to pay and ... Read More
November 13, 2017Leon Harris
25
Oct2017
Are Bitcoins and Other Virtual Currencies Tax-Exempt?
In 1964, the Dave Clark Five pop group raised room temperatures with their foot stomping hit “Bits and Pieces”. In 2017, the rise in bitcoin prices is again raising room temperatures.
To add to the euphoria, some think there is a big Israeli tax loophole.
With ... Read More
October 25, 2017Leon Harris
24
Oct2017
Information Exchange Gathers Pace
The first wave of automatic Common Reporting Standard (CRS) information exchanges has just begun between 49 countries. This is according to an OECD announcement on September 15. The 49 countries include Argentina, Barbados, Belgium, Bermuda, BVI, Cayman Islands, Cyprus, Czech Republic, Denmark, Estonia, France, Germany, Gibraltar, Greece, Guernsey, ... Read More
October 24, 2017Leon Harris
24
Oct2017
Israel amends all 56 tax treaties
In 2018, Israel’s 56 tax treaties may be amended in one go after signing on June 7, 2017 the OECD multilateral instrument (MLI) to implement tax treaty-related measures to prevent base erosion and profit shifting (BEPS). BEPS is the OECD program aimed at preventing offshore ... Read More
October 24, 2017Leon Harris
04
Oct2017
President Trump and the Republican party issued a tax reform “framework” plan on September 27. It’s only 9 pages long so we don’t yet have full details and it has yet to be enacted. Given that, what’s in store for US businesses, US Olim, and everyone else?
Business Taxation
The framework proposes ... Read More
October 4, 2017Leon Harris
27
Sep2017
In recent months we have witnessed several exit deals where Israeli hitech companies have been sold for a pretty penny.
But suppose some of the consideration payable to the founders and key employees is held back and subject to staying on for a period as an employee in the post-acquisition group?
Is ... Read More
September 27, 2017Leon Harris
27
Sep2017
The Israeli Tax Authority published final instructions regarding Reverse Vesting shares on June 5 (Circular 5.2017. This will be of interest to many people in the Start-Up Nation.
Until now, founders and key personnel holding 10% or more of a company seemed to miss out on the opportunity to pay only 25% tax ... Read More
September 27, 2017Leon Harris
11
Sep2017
Leon Harris
As part of the Israeli budget law for 2017 and 2018, the tax on dividends paid by companies to material shareholders was reduced to 25% in certain circumstances. But the deadline for doing so is October 1, 2017
The dividend tax change accompanies other new rules against to “wallet companies”, also ... Read More
September 11, 2017Leon Harris
11
Sep2017
Leon Harris
The Israeli Tax Authority (ITA) reports that it sent its ace team of bookkeeping examiners to Ben Gurion airport in the early hours of July 25 to check out the taxi drivers, and made a startling discovery. Not one of the drivers checked accurately recorded their income!
The ITA team ... Read More
September 11, 2017Leon Harris