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Larry Stern, CPA (US) Here’s the scenario.  You have just made Aliya and you are trying to get yourself settled.  The last thing you want to think about are taxes.  However…I am now living in Israel and I want to be compliant with my new country’s tax rules.  I know what I was required to do “back home.”  What do I need to do in my new home? Under Israeli law, all Israeli residents or households are required to file an annual income tax return.  However, as with every rule, there are exceptions. Exemptions are granted to certain groups of taxpayers, usually when

The Israel Tax Authority in February published a circular draft clarifying the classification of income from residential units. The circular explains the considerations according to which the income from residential units should be considered income from business, rather than passive income (private income entitling the landlord to potentially lower tax rates). Based on the current draft: Leasing 10 or more residential units constitutes a fully taxable business according to the Tax Authority, with tax rates up to 45-50 percent Individuals leasing 5-9 residential units will have to convince the Israel Tax Authority that they should be granted the passive income rates, after

Written: CPA Larry Stern & Liat Gruss The Israel Tax Authority recently announced that bitcoin and other cryptocurrencies would be taxed as a capital asset, not a currency. Israel had been considering the measure since 2013. The decision, announced in a circular on Feb. 19, means that cryptocurrencies are subject to capital gains tax for individual investors, and marginal rate taxation for those considered to be running businesses of cryptocurrency trading. Individuals who are mining or trading in cryptocurrencies, will be required to account for VAT (currently 17%), as per any standard business. This announcement comes as many Israeli banks have attempted to

Are you required to file a 2017 Israeli tax return? Israeli tax law states that every Israeli resident or household is required to file a 2017 Israeli tax return, whether or not taxes are owed. The current deadline for filing your 2017 tax return is May 31, 2018; a late filing may result in hefty monthly penalties. However, a supplement to the law grants exemptions from filing if you meet certain criteria; exemptions are mostly focused on people who will not have to pay additional taxes. Who Must File and Special Circumstances Here is a list of households that must file Israeli tax

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