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Category: Israeli Corporate Tax Planning
01
Feb2017
Israel is a lot less taxing than it used to be - and a bit less than many other countries. Following is a summary of the Israeli rates and tax brackets for 2017.
Businesses:
The regular company tax rate is 24%
The regular dividend tax rate is 30%-33% for 10%-or-more shareholders, 25%-28% for ... Read More
February 1, 2017Leon Harris
29
Jan2017
Israeli tax breaks for tech companies have just been clarified and extended, with effect from January 1, 2017, pursuant to Amendment 73 to the Law for the Encouragement of Capital Investments, 1959. It seems sure to further boost the Israeli economy.
The amendment comes in the wake of the recent OECD ... Read More
January 29, 2017Leon Harris
27
Dec2016
The Children of Israel in Bible times sat in Succot and ate Manna from Heaven. Modern Israelis sit in air conditioned offices and receive shares (Meniot), share options and restricted share plans from their employers.
Below is an update regarding recent Israeli tax rulings relating to share and option plans.
Israeli Taxation ... Read More
December 27, 2016Leon Harris
26
Dec2016
One of the major tax concepts Israeli inherited from Britain is "control and management".If the business of a company is controlled and managed in Israel, the company will generally be Israeli resident and taxable on its worldwide income and gains for Israeli tax purposes. This corresponds to the UK concept ... Read More
December 26, 2016Leon Harris
26
Dec2016
The Israeli Tax Authority (ITA) has issued a draft circular that would improve the tax position of founders and key personnel of companies, especially in hitech, who agree to limitations, namely reverse resting shares or a holdback of exit consideration.
Typically, the continued work of these people for a minimum period ... Read More
December 26, 2016Leon Harris
20
Dec2016
One of the modern mysteries of our time is how to invoice and record international revenue sharing transactions under Israel's rigid bookkeeping tax regulations.
Fortunately, the Israeli Tax Authority has just come to the rescue with a tax ruling (number 3956/16) on "the price of a transaction for the purchase of ... Read More
December 20, 2016Leon Harris
20
Dec2016
An Israeli Court has just ruled, in the Kontera case, that an Israeli R&D company which bills a foreign related company on a cost plus basis must include the value of stock options in its operating costs (Kontera Technologies Ltd V. Tel-Aviv 3 Assessing Officer, Tax Appeals 40433-11-12 and 19259-06-13, ... Read More
December 20, 2016Leon Harris
14
Dec2016
The Israeli tax Authority (ITA) and Swiss Finance Ministry signed on November 27 a declaration of intent regarding the exchange of information about financial accounts. The aim is to enhance cooperation regarding the supply of information, “egalitarian enforcement” of taxation in Israel, truthful tax payment and limit black money.
This is ... Read More
December 14, 2016Leon Harris
23
Nov2015
Last Thursday November 19, the Knesset finally passed the budget for 2015-2016 after reportedly addressing thousands of objections. Two laws were passed – Amendment 207 to the Income tax Ordinance, and a so-called Economic Efficiency Law. We review some of the tax measures.
Not Enacted:
First, which proposals were NOT passed? A ... Read More
November 23, 2015Leon Harris