Israeli Tax Alerts | Practical Interpretations | 2008-2020

235 2. Days in a stay as part of the clarification of the center of life: For all matters relating to the center of life (which is the main test for the examination of residency), the issues need to be examined at an objective level, however, consideration should also be given to the assessee's subjective intention. Thus, insofar as the circumstances of the case indicate a temporary enforced stay by the assessee in Israel (or abroad), then we should try to eliminate that impact insofar as is possible, or it should be given lower weighting in the examination of the center of life. The following are a number of aspect that are connected to the aforesaid:  In tax rulings, which have been given by the Israeli Tax Authority (hereinafter: "ITA") in connection with residency, the days in which the individual stayed in order to nurse a close family member have been eliminated, because of the fact that there has been an external constraint. Therefore, in our opinion, an assessee's enforced stay for medical reasons and/or because of legal directives should also be eliminated.  There are tax rulings in which employees in a relocation or other individuals have committed to a maximum period of staying in Israel (between 75 and 90 days) as part of the terms of the decision, in order to be considered to be foreign residents. Furthermore, there are decisions going in the opposite direction, which require a minimal number of days stayed in Israel (142 days) for the purpose or receiving confirmation of residency for tax purposes, for example. It is obvious that an unwilling stay in Israel, or abroad, in the Corona period, may cause the breach of these tax decisions.  The regulations that have been promulgated under the ITO, enable the elimination of a period of medical hospitalization in Israel, or a period of sickness in Israel, when counting the days stayed for the purpose of testing the center of life. Albeit the Corona period is not "hospitalization" within the literal meaning of the term, and it does not constitute "a sickness" (except for those who are really unlucky), however the rationale that lies behind the elimination this period is of course also relevant to the Corona period. The attribution of income to Israel in the case of mixed income A new immigrant (including someone who has returned to Israel after being a foreign resident for at least 10 years), is entitled to an exemption on the income that he produced outside of Israel for a period of ten years from the time of his immigration or return. For an immigrant who provides services (whether as a salaried employee or as a self-employed person) where they are alternatively in Israel and abroad, the ITA has determined, within the