Israeli hitech employees are highly motivated people who regularly work wonders of a technological nature. Part of that motivation comes from employee share option plans (ESOPS) which may provide a tax break if things go well in the tech company concerned But on the tax side, there have been developments that ... Read More

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

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

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

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

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

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

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