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 Personal 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
12
Feb2019
On or around January 21 this year, the Israeli Tax Authority (ITA) saw fit to issue to many Israeli taxpayers demands to file “missing” online annual tax returns going back many years, typically 2008-2012.
This may be a nightmare scenario - being forced to find and report income and expense documentation ... Read More
February 12, 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
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
20
Dec2018
On January 1, 2019 the use of cash to pay for things will become limited. The aim is to curtail the unofficial cash economy. The Israeli Tax Authority (ITA) has just published guidance on how this is meant to work (ITA Circular 17/2018 of December 4, 2018).
The basics:
The cash limitations ... Read More
December 20, 2018Leon Harris