Tax alert

On June 15, 2011 the Israeli government published amendments to 3 regulations, thus revoking certain tax exemptions available to foreign residents. Accordingly, the exemptions given to foreign residents on interest and capital gains derived indirectly from State loans traded in the Israeli stock exchange (bearing a maturity date...

Rental housing is an essential social and economic goal, and it is for a good reason that the Israeli legislator wishes to encourage this sector. Chapter 7-1 of The Law of Encouragement of Capital Investment provides for tax benefits to encourage the establishment and operation of buildings comprising of rental apartments...

In our previous tax alert (No. 10), we have reviewed the Israeli government's measures aimed to increase the supply of residential apartments/homes, as presented in the Real Estate Taxation Act (increasing the supply of residential apartments - Temporary order), 2011. According to a Memorandum of a Bill proposal that was...

Due to a shortage of residential apartments as well as the increase in real estate prices, the government has decided to take some measures aimed to increase the supply of residential apartments for short term. Accordingly, real estate Taxation Act (increasing the supply of Residential Apartments - Temporary Order)...

We would like to inform the amendments for the Law for Encouragement of Capital Investment were legislated and are effective since January 1st, 2011. with this regard, we would like to point out that the company income tax (CIT) rates for "A Preferred Company" are different than the rates published in the initial proposal for...

On November 18, 2010, a treaty for the avoidance of double taxation was initiated by and between Israel and Malta. Like other tax treaties Israel has signed lately, this treaty is based on the OECD model. The treaty sets out the withholding tax rates between the two countries as we will specify herein. The treaty will enter into...

A U.S. Limited Liability Company (hereinafter: "LLC") is a legal entity established in accordance with the legislation of many states in the U.S.A. its legal status, as well as its members', is governed by the law of each state. For income tax purposes, however, the LLC is considered as a pass-through entity and is treated as a...

Following the budget discussions in Israel for 2011-2012, a major reform in the Law for Encouragement of Capital Investment (hereinafter: "Encouragement Law"), is expected. Once approved, the encouragement law will be changed dramatically in order to enhance Israel's economic activity and employment. The major...

Several months ago, a new treaty for the avoidance of double taxation, was initialed by and between Israel and Austria. The new treaty sets lower withholding tax rates compared to the current treaty in force. The new treaty will be in force following the formal signing and ratification procedures by both states. Dividends - According...

With the aim of encouraging the Israeli Hi-Tech industry and innovative research and development in Israel, as well as the aim to attract highly qualified human resources to Israel, it is proposed to grant a tax exemption on royalty income paid to a "beneficiary resident", for a period of 5 years. According to the proposal, scientists...