If you or your children are U.S. citizens, investors in the United States, or otherwise interacting with U.S. business interests, changes are upon us! Here is a brief summary of some important things to note for the upcoming year.
Kids and Taxes
Bituach Leumi Savings Plan
Children who are Israeli citizens will begin to receive money in the amount of 50 NIS from Bituach Leumi (national insurance) on a monthly basis. Parents may choose to match this amount, as well as choose where it should be deposited – a savings account or a mutual fund (kupat gemel). The kupat gemel requires burdensome tax reporting requirements for children who are U.S. citizens, as well as punitive taxation for investing in foreign mutual funds. This complex U.S. law is known as the PFIC tax regime. [Read more…]