With the end of the tax year fast approaching, here are a few tips that may be relevant: If you haven’t already done so, make a claim for the Working Tax Grant (negative income tax) in respect of 2013 income. The deadline is Friday 26th December. If you are a
In the USA, one of the most common ways of running a business or investment is via an LLC (Limited Liability Corportation). Such a vehicle has a number of advantages, but these are not our concern here. The tax treatment in the USA is that, although the LLC is a
Feel free to join the Tax in Israel Facebook group In a previous post, we considered who was required to file a tax return. However, it could be that even if you are not required to do so, it will be on your interests – if you are due a
Two interest articles have appeared in The Marker (Hebrew) over the last 24 hours. The first article discusses the fact that the Treasury has agreed to put into place measures necessary to ensure that Israel will be compliant with the OECD’s multilateral exchange of information agreement regarding bank account holders
Feel free to join the Tax in Israel Facebook group In the previous post, we saw an example of how a company can, under certain circumstances, have its income treated as taxable in the hands of the shareholders. The one other example under Israeli law is the “house company”. In
In regular circumstances, a company is treated as a seperate entity for tax purposes; in much the same way that it is treated separately for legal purposes. However, there is the option – under certain circumstances – for the income to be taxed directly in the hands of the shareholder.
Yesterday (7th September 2014), the Israeli tax authority finally published their long-awaited and anticipated Voluntary Disclosure scheme. Anyone who has committed a tax felony, be it related to Income Tax, VAT, Mas Shevach (Land Appreciation Tax) or Customs, can now come forward, report the income, pay the tax (including all
Another type of company that the Israeli tax office doesn’t like is one where a profession is carried out abroad, and the profits are not directly taxed in Israel. As such, the tax law sets out rules for a Foreign Professional Company (FPC). These rules were revised for 2014, and
Feel free to join the Tax in Israel Facebook group One of the suspected tax planning methods that the Israeli government doesn’t like is for those investing overseas to form a company on a tax haven to hold the investments. The thinking would be to hold the investments within the
It is fairly common for people to invest overseas, be it in businesses or other assets (e.g. property, shares etc.). One of the most common ways to invest is to set up a company in the country of investment, owned by the foreign investors. The first issue that Israelis must
