Tax alert

An income tax circular which was published by the Income Tax Authority in Israel (hereinafter: the "ITA") sets forth criteria for the Tax Assessor at the time of determining an assessment for a taxpayer who does not possess the reference documents to substantiate the existence of any particular expense or the cost of any...

The provisions of the Israeli Income Tax Ordinance (hereinafter: "ITO") make the offsetting of a capital loss contingent upon the situation whereby had there been a profit, it would have been liable to tax. This stipulation is a basic principle in all matters pertaining to the possibility of the offsetting of losses, also with regard to losses...

We deem it appropriate to update our colleagues and clients, in this news bulletin, regarding a number of legislative processes and temporary orders which are relevant at the present time. 1. Raising Taxes: • The rate of VAT has been raised up to 17% (instead of 16%), effective from September 1, 2012. • In August 2012...

On 12 January 2012, the Israeli District Court of Appeals (case no 1029/00), published a ruling which highlights the guiding principles on when a company established abroad will be considered to be Israeli resident for tax purpose, as far as the management and control of its business are conducted in Israel. In this case...

As mentioned in our 10th Tax Alert, a treaty for the avoidance of double taxation was initiated on November 2010 by and betweenIsrael and Malta. On August 2011, the treaty was signed by both countries, and will enter into force following the formal ratification procedure by both states, assumingly not before 2013. For details...

On February 1st, 2012, the Supreme Court issued a new ruling regarding the individual taxpayer's entitlement to consolidated or separate calculation of the tax liability of the taxpayer and his\her spouse (the Malkieli case). It should be emphasized that in a separate calculation, each spouse's tax liability is determined separately...

On November 15th, 2011, the Israeli Tax Authority (Hereinafter: "ITA") published a circular concerning a temporary favorable procedure of voluntary disclosure, with regard to undeclared foreign assets and earnings outside of Israel. The procedure was set for a limited period of time commencing November 15th, 2011 until...

On December 6th, 2011, following nationwide protests demanding socioeconomic change and "social justice", a large tax amendment was published in the Official Gazette of the Israeli Government (2011) (Hereinafter: the "Legislation"). In this tax alert we attempt to describe the main changes which resulted from the Legislation...

The real estate Taxation Act (increasing the supply of Residential Apartments - temporary order), 2011 as formerly reviewed in our tax alert no. 11, was legislated on 1st August 2011. Our update concerns a temporary order supplement to the temporary order above mentioned, that was published (hereinafter: "Amendment...

Within the Economic Efficiency law of 2009, a gradual reduction in both corporate and individual income tax rates was established. Accordingly, the corporate tax was set to 25% in 2010, 24% in 2011, 23% in 2012 etc'. The final reduced tax rate was established to 18% in 2016. The top individual income tax bracket was to be...