Weekly Newsletters
2010 marks the accession of Israelto the OECD as a full member. This reinforces Israel's global position economically as well as in other fields. As part of this process, Israel joined the OECD anti-bribery convention and amended its tax legislation to deny as expenditure any payment that may reasonably constitute a criminal...
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...
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...
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...
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...
As part of the benefits a new immigrant receives, he is entitled to a reduced purchase tax rates. This in accordance to the real estate taxation regulations (betterment, sale and purchase)-1974, indicating that a new immigrant would pay a reduced purchase tax of 0.5% up to a limit of about 1.4 million NIS. Beyond that limited...
Amendment 168 to the ITA was designed mainly to absorb immigration to Israel; to bring back human capital and to encourage financially capable investors to become Israeli residents. Within this amendment different provisions were added "to preserve the new immigrants and\or veteran residents (hereinafter: "beneficiary...
Similar to other countries around the globe that have a participation exemption regime, Israel has regulated participation exemption rules in relation to an Israeli holding company. Such company enjoys different exemptions, among others, exemption on capital gain when selling the shares of the companies it holds...
The treaty between Israel and Georgia was signed in May 12, 2010. Like other new treaties Israel has signed lately (see tax alert No 7), this treaty sets out rules that enables Israel's Competing abilities on an international level, as well as to encourage mutual investments. The treaty should enter into force on January 1st, 2011...