Israeli Tax Alerts | Practical Interpretations | 2008-2020

6  U PDATE ON F ORTHCOMING C HANGES IN T AX L EGISLATION (D ECEMBER 2016) ...................................90  T AXATION OF D EBIT BALANCES , O WNER ’ S W ITHDRAWAL AND S HAREHOLDER ’ S U SE OF C OMPANY A SSETS (J ULY 2017) ....................................................................................................93  T EMPORARY ORDER ON DISTRIBUTION OF DIVIDENDS AT BENEFICIARY RATE AND TREATMENT OF THE MATTER BY THE I SRAEL T AX A UTHORITY (J ULY 2017) ............................................................94  T AXATION OF O PTIONS A LLOCATED TO R ELOCATED E MPLOYEES - T AX R ULING (O CTOBER 2017) .......................................................................................................................95  C ANCELLING THE R EQUIREMENT FOR D EDUCTION AT S OURCE FOR C ERTAIN T RANSFERS OF F UNDS A BROAD (D ECEMBER 2017)..............................................................................................97  S UPREME C OURT R ULING ON F OREIGN T AX C REDIT O VERTURNS L OWER C OURT R ULING (J ULY 2018) ..............................................................................................................................98  G RANTING O PTIONS W HOSE V ESTING IS E XIT E VENT D EPENDENT TO E MPLOYEES ON R ELOCATION (S EPTEMBER 2018)..................................................................................................99  C ORPORATE I NVERSION - A N EW G REEN P ATH : T HE T RANSFER OF S HARES IN AN I SRAELI C OMPANY TO A F OREIGN C OMPANY T HAT IS R ESIDENT IN A T REATY C OUNTRY (D ECEMBER 2018) .................................................................................................................. 101  VAT - S ERVICE P ROVISION TO F OREIGN R ESIDENTS ON AN E-C OMMERCE M ARKETING W EBSITE IS S UBJECT TO F ULL VAT (N OVEMBER 2019) ................................................................. 103  T HE A CQUISITION OF A C OMPANY T HAT H AS A CCUMULATED L OSSES - THE E CONOMIC E QUIVALENCE B ETWEEN THE F ISCAL G ROUNDS AND THE C OMMERCIAL G ROUNDS (S EPTEMBER 2020) ................................................................................................................. 105  T HE B ROADCOM R ULING - I NNOVATION ON THE S UBJECT OF A C HANGE IN A B USINESS M ODEL (S EPTEMBER 2020)...................................................................................................... 109 CHAPTER 7: FOREIGN RESIDENTS............................................................................... 113  D IVIDEND S TRIPPING AND THE S IGNON J UDICIAL D ECISION ( MARCH 2008)...................................... 114  N EW T AX B ENEFITS P ACKAGE A S P ART OF THE I SRAELI E CONOMIC E NHANCEMENT P ROGRAM OF 2008 (D ECEMBER 2008) ..................................................................................... 114  C URRENT T AX B ENEFITS TO F OREIGN R ESIDENTS I NVESTING IN THE I SRAELI M ARKET (A PRIL 2009) ......................................................................................................................... 115  A H IDDEN A DVANTAGE - THE R EPRESENTATIVE T AXPAYER IN A "F AMILY C OMPANY " (M ARCH 2010)....................................................................................................................... 117  R EVOKING E XEMPTIONS TO N ON -I SRAELI R ESIDENTS O N C APITAL G AINS AND I NTEREST A RISING F ROM S ECURITIES (J ULY 2011) ..................................................................................... 117  D EDUCTIBLE E XPENSE AND C APITAL L OSS FOR A F OREIGN R ESIDENT - T HE "A NGELS L AW " (S EPTEMBER 2012). ................................................................................................................ 118  T AXATION IN I SRAEL FOR F OREIGN R ESIDENTS W ITH F OREIGN S OURCED I NCOME (A PRIL 2015) ......................................................................................................................... 120  R ESIDENCY R ELOCATION OF A F OREIGN C OMPANY IS NOT A T AX E VENT (D ECEMBER 2015) .................................................................................................................. 121  S ECTION 97(B3) B EFORE AND A FTER : A B LESSING T HAT P ROVED TO BE A C URSE ? (A PRIL 2016) ......................................................................................................................... 123  T AXATION OF FOREIGN CORPORATIONS FOR I NTERNET ACTIVITY (S EPTEMBER 2016) ......................... 124  I SSUES IN A TTRIBUTING I NCOME OF A F OREIGN C OMPANY TO I SRAEL (J ULY 2017)............................ 126  F OREIGN R ESIDENTS ' L IABILITY TO S URTAX (O CTOBER 2017)......................................................... 128  B USINESS I NVESTMENTS - I NSIGHT F ROM T AXATION D ECISIONS ON THE S UBJECT OF P ERMANENT E STABLISHMENT FOR F OREIGN I NVESTORS (M ARCH 2018) ......................................... 129  C OMPANY OR B RANCH O FFICE ? C ONSIDERATIONS IN D ETERMINING THE L EGAL E NTITY FOR B USINESS O PERATIONS IN I SRAEL OR A BROAD (J ULY 2018) ..................................................... 131  D ELEK H UNGARY R ULING (P ROFITS A VAILABLE FOR D ISTRIBUTION IN A F OREIGN C OMPANY )