Tax | Barnea

It Is Time to Come Back Home: Investors Can Now Enjoy a Reduced Purchase Tax

August 2, 2020 / Liat Keisary Yahalomi

Israeli Minister of Finance Israel Katz’s plan to reduce purchase tax for investors has gone into effect. Until now, under plans advanced by the previous Minister of Finance, Moshe Kahlon, for lowering housing prices and pushing investors out of the real estate market, the purchase tax for investors went up from 5% to 8% for an apartment that was not the purchaser's sole apartment.

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Categories: Private Clients Tax | Real Estate | Tax

Taxation of Hedge Funds in Israel – A Short Guide to the Perplexed

July 2, 2020 / Hanna Daher, Harel Perlmutter, Roy Engel

A hedge fund is an entity comprised of several investors seeking to invest in financial assets to achieve a common profit, where the execution of the investment may change from one fund to another, in accordance with the investment strategies put in place by the fund manager.

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Categories: Capital Markets | Hedge Funds | Tax

Israel Tax Authority Reliefs in Light of Coronavirus Pandemic

March 25, 2020 / Harel Perlmutter

In light of the coronavirus pandemic affecting the economic market, the Israel Tax Authority has published several reliefs for taxpayers.

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Categories: Tax

Court Rules an Employee whose Shares in a Company Are Held by a 102 Trustee Has No Shareholder Rights in the Company

March 5, 2020 / Harel Perlmutter

The Haifa District Court recently held, in a precedential decision, that an employee who received shares in a company held by a trustee in accordance with section 102 of the Income Tax Ordinance has no shareholder rights.

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Categories: Employee Tax Benefits | Tax

Amending Protocol to Israel-UK Tax Treaty to Take Effect in Early January 2020

January 2, 2020 / Harel Perlmutter, Hanna Daher

An amending protocol to the 1962 Israel-UK tax treaty is effective as of January 1, 2020.The protocol includes a long list of significant and fundamental amendments and updates.

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Categories: International Taxation | Tax

Israel-Serbia Double Taxation Treaty to Take Effect in January 2020

January 1, 2020 / Harel Perlmutter, Nir Ziman

The treaty for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income between the government of Israel and the government of the Republic of Serbia is expected to take effect on January 1, 2020.

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Categories: International Taxation | Tax

Israel-Australia Double Taxation Treaty Enters into Force on January 1, 2020

December 31, 2019 / Harel Perlmutter

The Minister of Finance signed in December 2019 the order bringing the double taxation treaty into effect on January 1, 2020.

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Categories: International Taxation | Tax

The End of Sanction-Free Voluntary Disclosure

November 27, 2019 / Hanna Daher, Harel Perlmutter

The sanction-free voluntary disclosure procedure will come to a close at the end of 2019. Provided the Israel Tax Authority (ITA) and the State Attorney’s Office decide not to extend this procedure, this may be the last opportunity to declare and report true income, and accordingly pay true taxes, without the discloser being subject to criminal sanctions.

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Categories: Private Clients Tax | Tax

Dramatic Decision on the Taxation of Trusts in Israel

July 31, 2019 / Harel Perlmutter

The Tel Aviv District Court handed down a decision a few days ago rejecting the Israel Tax Authority’s (ITA) position on the conveyance of real estate properties to trusts. This decision dramatically changes the taxation of trusts in Israel.

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Categories: Private Clients | Real Estate | Tax

Precedential Court Ruling on Options Plans for Employees

July 17, 2019 / Harel Perlmutter

A precedential judgment was handed down on option plans for employees in respect of section 102 of the Income Tax Ordinance. The court ruled that when a tax assessor is notified of the allocation of options in accordance with section 102 and fails to respond within 90 days, the plan is approved and the assessor cannot later claim that this is not so, except in very exceptional cases.

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Categories: Employee Tax Benefits | Start Ups | Tax

Israel and Australia Signed a Double Tax Treaty

April 16, 2019 / Nir Ziman, Harel Perlmutter

A double taxation treaty was signed between Israel and Australia in the end of March 2019, after years of prolonged negotiations, expectations, and wonder about the obstacles.

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Categories: International Taxation | Tax

Israel Tax Authority Issues New Rules for Recognizing Property Betterment Expenses

December 23, 2018 / Maya Zisser

The Law for Reducing the Use of Cash, which is scheduled to come into effect on January 1, 2019, will have a significant impact on the real-estate sector.

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Categories: Real Estate | Real Estate Taxation | Real Estate Transactions

Tax Aspects of Business Restructuring - New Tax Circular

December 18, 2018 / Harel Perlmutter

Recently, the Israel Tax Authority published a circular discussing business restructuring in multinational groups.

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Categories: Corporate | International Taxation | Tax

Companies Required to Amend Option Plans

December 13, 2018 / Daniel Lorber

A new circular by the Israel Tax Authority determines the terms for granting options to employees when the vesting of such options is contingent upon performance milestones or the occurrence of an IPO or exit event.

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Categories: Corporate | Employee Tax Benefits | Technology

New Era in International Tax Treaties: Israel Signs the MLI Treaty

November 6, 2018 / Harel Perlmutter

Israeli signed the The Multilateral Instrument (MLI) Treaty, which will come into effect on January 1, 2019. The treaty will affect both Israeli and international corporations operating in Israel and overseas.

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Categories: International Taxation | Tax

Have You Ever Paid Betterment Tax or Purchase Tax? - You May Be Eligible for a Rebate

August 29, 2018 / Maya Zisser

The Israel Tax Authority (ITA) recently launched an application that allows anyone who previously executed a real-estate transaction to check whether he or she has a credit balance in respect of an overpayment of betterment tax or purchase tax.

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Categories: Real Estate | Real Estate Taxation | Real Estate Taxation | Real Estate Transactions

Israeli Supreme Court Rules: Option Allotment Expenses Must Be Included In The Cost Base Calculation

May 21, 2018 / Harel Perlmutter

The Israeli Supreme Court recently ruled a judgment on the matter of high-tech companies Kontera Technologies Ltd. and Finisar Israel Ltd. The facts underlying this judgment are relevant to many technology and startup companies in Israel engaged in RD services with their foreign parent companies, and which their revenue is being calculated using a Cost-Plus method.

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Categories: International Taxation | Tax

Knesset Allows IPO Expenses to Be Deducted from Corporate Earnings

March 18, 2018 / Barnea, Zvi Gabbay

Recently, after initial approval by the Finance Committee, the Knesset has passed a temporary order to the Income Tax Law with regards to deduction of issue expenses. According to the law, the expenses related to issuing the shares of companies and partnership participation units on the Tel Aviv Stock Exchange (TASE) will now be recognized as expenses for tax purposes.

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Categories: Capital Markets | Capital Markets Regulation | Tax

Tax Authority Defines Rent Earned from Leasing 10 Apartments or more as Business Income

February 15, 2018 / Harel Perlmutter

The Israel Tax Authority (ITA) recently published a draft circular for public comment on the issue of classifying residential rent income. The ITA states that, according to its reasoning, income from the leasing of 10 or more apartments should be deemed business income.

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Categories: Private Clients | Real Estate Taxation | Real Estate Taxation | Tax

Changes in the Taxation of Sales of Residential Apartments

December 19, 2017 / Maya Zisser

A number of changes in the taxation of residential apartment sales will come into effect on January 2018.

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Categories: Real Estate | Real Estate Taxation | Real Estate Taxation

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