Transfer pricing ("TP") tax implications should be regarded as a key factor, in relation to any cross border transaction. A re-llocation of income by any tax authority may cause significant tax liabilities and double taxation, in addition to a possible tax inspection by the Israeli ITA. It should be noted that the Israeli TP rules are under...
International taxation - Transfer pricing: What to declare to the Tax Authority - a new form in your tax return
International taxation - Voluntary isclosure - taxation on capital as part of the Voluntary Disclosure Procedure by the Tax Authority is legitimate
Over the last decade many Israeli residents have sought to settle previously unreported accounts of foreign - held assets and the income generated by them with the Tax Authority. This was typically performed by a formal petition to the Tax Authority via the Voluntary Disclosure Procedure. The procedure has changed over the years, has been extended periodically, and even allowed for submission of anonymous requests and negotiations until an arrangement was reached.
International taxation - VAT - service provision to foreign residents on an e-commerce marketing website is subject to full VAT
The Tax Authority has just published a tax ruling (decision 4429/19), about VAT obligations for services rendered to a foreign resident via operation and management of a website advertising products of foreign suppliers abroad that provides links (affiliation) to the supplier websites abroad for purchase. The taxation decision states that full VAT applies to income from these services despite the rule that a zero rate VAT applies to services provided to foreign residents.
Voluntary Disclosure - taxation on capital as part of the Voluntary Disclosure Procedure by the Tax Authority is legitimate - 10.11.2019