Commencing in 2025, a controversial Israeli amendment makes the following main changes: (1) A 2% surtax on undistributed profits of many companies, including profits earned years ago, (2) Up to 50% tax for shareholders on profits made by various professional companies.

The Israeli District Court has ruled that the Coca Cola’s Israeli bottler should have withheld royalty withholding tax on payments for imported Coke concentrate because of the Coke trade name. Did the Court mis-read OECD guidance? How wide are the ramifications for trade with Israel? Why are passages on 13 ... Read More

Israeli businesses and their clients are preparing for the rise in VAT to 18% in 2025.

Reasonable year-end tax planning is advisable for businesses and families.

The Israeli tax break rules are being tightened up for new Employee Share (=Stock) Ownership Plans (ESOPs) commencing January 1, 2025. This will be important for many Israeli hitech and other companies, and their employees.   (Regulations Number 11461 of Sep 17, 2024) Current ESOP Tax Breaks in Israel Section 102 of the ... Read More

The proposed Israeli budget tax proposals are now cantering along. Here is a brief update.

With the war into its second year, we are experiencing a wave of enquiries from people thinking of buying a one way ticket out of Israel to live elsewhere.  Below we briefly discuss some of the tax challenges of no longer residing in Israel. Israeli tax issues: Here is the crunch. If ... Read More

The Israeli Finance Ministry published its draft economic program (i.e. budget) for 2025 on October 14, 2024. This contains a series of decisions and explanations but no clauses yet for the draft 2025 budget law. The credit rating agencies have complained about delays in the 2025 budget process. They do ... Read More

The Israeli government is still formulating tough 2025 budget measures. In the meantime, a new regulation actually reduces purchase (Mas Recisha) tax on Israeli homes for new immigrants to Israel (Olim), commencing August 12, 2024 (Real Estate Taxation (Appreciation and Purchase)(Purchase Tax)(Amendment), Regulations 2024, number 11414). Old Rules: Before the new regulation ... Read More