Category: Israeli Corporate Tax Planning

24

Aug2023

About Exits

Hitech founders often dream of an exit (M&A deal). How does a tech company exit (M&A deal) at a good price? A corporate auction may sometimes improve the starting price, but how does a seller company get to the best starting price in the first place? And what are potential buyers ... Read More
August 24, 2023Leon Harris

24

Aug2023
An Israeli court has ruled that if a foreign group buys the shares of an Israeli tech start-up, strips out the IP (intellectual property) and terminates the Israeli company, the company must pay tax on the IP stripped out (Medtronic Vs. Kfar Saba Assessing Officer, District Court Civil Appeal 31671-09-18, ... Read More
August 24, 2023Leon Harris

24

Aug2023
The budget law has now passed the Knesset. It contains various measures relating to e-invoice numbers, small businesses, rental income taxed at 10% and much more. Below is a review of some income tax and VAT measures (Economic Efficiency Law (Legislative Amendments To Achieve Budgetary Goals for Budget Years 2023-2024), ... Read More
August 24, 2023Leon Harris

27

May2023
The Israeli Tax Authority (ITA) has issued instructions for the non-taxation of SAFEs (Simple Agreement For Future Equity). A SAFE has become a popular way of financing hitech start-ups in the last few years so non-taxation instructions are important. The instructions weren’t passed by the Knesset, they were issued in ... Read More
May 27, 2023Leon Harris

27

May2023
The Israeli Supreme Court has just ruled when an M&A deal (merger & acquisition or “exit” deal) is considered done and which resulting exchange rate should be used to report the deal for Israeli capital gains tax purposes. Background: The Israeli shekel has its ups and downs, so exchange rates matter. Many M&A ... Read More
May 27, 2023Leon Harris

27

May2023
The term “treaty shopping” means using a company which just happens to be incorporated in a country which has a favorable tax treaty with another country, such as Israel. In a recent District Court, a BVI (British Virgins Island) company with a branch in Israel was owned by a BVI parent ... Read More
May 27, 2023Leon Harris

27

May2023
Governing the Israeli people has always been difficult, but the proposed changes to the judicial system are proving especially challenging and divisive. The people are split down the middle, Israel’s economy and credit rating may or may not be affected, and the world is looking on. So what are the ... Read More
May 27, 2023Leon Harris

27

May2023
The Israeli tax return filing season has started…. Who must file a tax return? In principle, persons required to file an annual Israeli tax return include: (1) Israeli resident individuals over 18 unless they are eligible for a filing exemption (see below); (2) most trusts with an Israeli connection; (3) Beneficiaries  who ... Read More
May 27, 2023Leon Harris

27

May2023
In the hitech world, you are only as good as your last few start-ups. So if 80% of them are being set up outside of Israel, the Israeli economy may be on borrowed time..... The Israel Innovation Authority has published a Position Paper (“Concern About Disintegration of Israeli Hitech Due To ... Read More
May 27, 2023Leon Harris

19

Mar2023
President Herzog presented his draft “People’s Plan” for judicial reform on March 15, 2023. But within minutes it was rejected by the government. You can read the draft plan in English here: https://www.mitve-haam.org/ (scroll down and click on “The People’s Directive”). We consider below some of the anticipated consequences for ... Read More
March 19, 2023Leon Harris