Weekly Newsletters
As we indicated in our Tax Alert No. 2 (August 25, 2008), the 147 Income Tax Ordinance Amendment has introduced a new tax regime of trusts into the Israeli tax law. Amendment 147 (effective date January 1, 2006) also imposed certain reporting requirements on trusts that were created prior to Amendments 147. A detailed...
Recently, the ITA has been "updating" old income tax treaties which were concluded by Israel in the sixties. The new treaties are based on the OECD Model Convention on Income and Capital. A new tax treaty with Germany was signed (with initials) and similarly the new tax treaty with the UK (April 2, 2009). The full text of the treaties...
Israeli VAT rate increase - Please be informed that the Israeli Minister of Finance has issued a formal Order, according to which the VAT rate will be increased to 16.5% (replacing the 15.5% rate), as a temporary provision, which is effective from July 1, 2009 and until December 31, 2010. The order was approved by the...
As part of the global combat against harmful practices in the area of taxation, Israel has been joining the OECD efforts in this area. Following the OECD Convention on Combating Bribery and the OECD Report on the implementation of this Convention by Israel (March 19, 2009), a specific Draft Law Amendment 170 to the...
Following the recent changes in Israeli tax legislation with respect to investments and business activities of non-Israeli residents in the Israeli market, we provide you with a brief summary of the general tax benefits and reliefs to non-residents in relation to selected issues: Interest on Israeli deposit accounts in local currency...
As we indicated on our Tax News Alert of August 25, 2008 the Israeli transfer pricing ("TP") rules, which became effective on November 29, 2006 apply to cross border transactions in which one party is an Israeli tax resident. Loans between related parties are generally subject to Section 3(j) of the ITO. Section 3(j) imposes...
An Israeli resident company ("ILCo") and other non-Israeli resident investors have founded a real estate fund (the "Fund") in order to invest in real estate assets in several European countries. This Fund was formed as a Limited Liability Partnership (the "LLP") according to the laws of a certain third country (State X). This LLP...