Israeli Tax Alerts | Practical Interpretations | 2008-2020

4 TABLE OF CONTENTS CHAPTER 1: INDIVIDUAL AND CORPORATE RESIDENCY ............................................... 10  M ANAGEMENT AND C ONTROL FROM I SRAEL - A L ANDMARK C ASE AND G UIDING P RINCIPLES (N IAGO C ASE ) (A PRIL 2012) .......................................................................................11  N EW A NNOUNCEMENTS OF THE T AX A UTHORITY ON I NDIVIDUAL R ESIDENCY (A PRIL 2013) ............................................................................................................................13  D ECLARATION OF R ESIDENCY W HEN P URCHASING A S INGLE R ESIDENTIAL A PARTMENT - W HO IS AN I SRAELI R ESIDENT , AND FOR W HICH P URPOSE ? (D ECEMBER 2013)...................................16  Y ANCO - W EISS C ASE - THE "M ANAGEMENT AND C ONTROL " C RITERION (A PRIL 2014) ............................................................................................................................17  T HE D IMINISHING E FFECT OF THE S UBJECTIVE T EST W HEN E XAMINING T AX R ESIDENCE (J ANUARY 2015)........................................................................................................18  E MPHASES FOR M ANAGEMENT AND C ONTROL T ESTS (D ECEMBER 2016) ...........................................20  O BLIGATION TO F ILE A R ETURN B Y A NYONE C ONSIDERED AN I SRAELI R ESIDENT A CCORDING TO THE S UBSTANTIAL P RESENCE T EST AND C LAIMING TO BE A F OREIGN R ESIDENT (O CTOBER 2017).........................................................................................................21  R ESIDENCE A CCORDING TO C ITIZENSHIP ? (D ECEMBER 2018) ...........................................................23  C ONTROL AND M ANAGEMENT F ROM I SRAEL AT THE E ND OF THE B ENEFITS P ERIOD (A PRIL 2020) .................................................................................................................26  E NFORCED R ESIDENCY - THE I MPACT OF THE C ORONA C URFEW ON R ESIDENCY FOR TAX P URPOSES AND R ELATED I SSUES (A PRIL 2020) ...................................................................28 CHAPTER 2: NEW IMMIGRANTS AND RETURNING RESIDENTS .................................... 33  E NTRY I NTO F ORCE OF A MENDMENT 168 - I SRAELI N EW I MMIGRANTS AND R ETURNING R ESIDENTS T AXATION (D ECEMBER 2009) .....................................................................34  F AMILY C OMPANY AND B ENEFITS FOR N EW I MMIGRANT (D ECEMBER 2009) ......................................35  B ENEFITS TO A N EW I MMIGRANT W HEN P URCHASING 2 A PARTMENTS IN I SRAEL (J ULY 2010) ..............................................................................................................................36  D ENYING R IGHTS TO A F OREIGN C OMPANY B EING H ELD B Y A N EW I MMIGRANT OR V ETERAN R ESIDENT (J ULY 2010) .............................................................................................37  T AX E XEMPTION TO A B ENEFICIARY R ESIDENT ON R OYALTY I NCOME P AID BY AN I SRAELI R&D C OMPANY (D ECEMBER 2010) ...................................................................................38  T AXATION D ECISION ON THE A CTIVITY OF AN E LIGIBLE I NDIVIDUAL T HROUGH A F AMILY C OMPANY (D ECEMBER 2015)...........................................................................................39  I MMIGRATING TO I SRAEL , E VEN F ROM A T REATY C OUNTRY , D OES NOT N ECESSARILY S EVER R ESIDENCY OF THE C OUNTRY OF O RIGIN (A PRIL 2016)...........................................................41  C HANGE IN I SRAEL T AX A UTHORITY ’ S P OSITION - T AXATION OF F OREIGN I NCOME IN THE H ANDS OF A R ETURNING R ESIDENT - S HALL B E T AXED ON A C ASH B ASIS (J ULY 2017) ....................43  T AXATION A SPECTS W ITH R EGARD TO A G IFT F ROM A F OREIGN R ESIDENT F ATHER TO A N EW I MMIGRANT S ON (O CTOBER 2017)...............................................................................44  S ALE BY A N EW I MMIGRANT OR R ETURNING R ESIDENT OF S HARES IN A F OREIGN C OMPANY , P ART OF W HOSE V ALUE IS D ERIVED F ROM I SRAELI A SSETS (M ARCH 2018) ........................47  C ONTROL AND M ANAGEMENT F ROM I SRAEL AT THE E ND OF THE B ENEFITS P ERIOD (A PRIL 2020) .........48