This post is a similar post from last year, with the required amendments etc. pertinent to the 2013 tax year. The deadline for filing your 2013 tax return is Monday 30th June 2014. The Tax Law states that every Israeli resident is required to file a tax return every year, and doing so late results in hefty penalties (in excess of NIS 1,000 for each month between the official deadline and the actual filing). That being said, a supplementary ruling to the law grants exemptions from filing if you (and your spouse – assume this the whole way through this post) meet certain criteria. The

As discussed previously, capital gains tax arises when an asset is sold; the gain being the difference between the proceeds and the cost. It is important to define both of these terms. Proceeds The law sees the proceeds as the “fair-value” of the asset. This is defined as the going market-rate between two unrelated parties, with the asset not subject to any restrictions or liens. In most cases, this is the same as the actual cost. The definition is designed to exclude situations whereby an artificially low price is set; the low price does not count for tax purposes. Cost The law delineates six different