The Tzfat Magistrates Court has just ruled that a lien (bank freeze) slapped on an unsuspecting taxpayer by the Israeli Tax Authority (ITA) was against the law and defamatory. The ITA was given 30 days to pay damages and costs!! (Case 2692-08-18 issued February 16, 2020).
This case will be of ... Read More
Category: Israeli Corporate Tax Planning
30
Jan2020
The Israeli Tax Authority (ITA) has found a controversial back-door way of retroactively reducing the ten year Israeli tax exemption for foreign income of Olim, in the tenth year. They did so by issuing new “reportable tax positions” on December 30, 2019 regarding 2019 onwards. Does the Israeli Tax Authority ... Read More
January 30, 2020Leon Harris
30
Jan2020
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
January 30, 2020Leon Harris
06
Sep2019
Calling all Brits! Wondering what the future holds? You are invited to our upcoming seminars - “Israel InSight”. Discover what hope and inspiration Israel offers Olim and other insightful people.
Sep 18 6.30 pm - Manchester
“The Shrubberies” / Sep 19 6.30 pm - London JW3
Also available for Private Meetings
Specialist UK ... Read More
September 6, 2019Leon Harris
18
Apr2019
On April 11, Israelis and others were riveted to their TV screens and YouTube as the Beresheet spacecraft reached the Moon and nearly landed successfully. This was a major achievement and nobody was hurt. Beresheet means in the beginning. An early question coming to mind is if Bereshhet had made ... Read More
April 18, 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