The latest amendment to the tax law was publicized last week. Among the sections included in the new law was a section dealing with the circumstances in which the Israeli Tax Authority is permitted to exchange information with other tax authorities across the world. Without going into the details of
As we have seen previously in this series, tax is levied in Israel in one way or another wherever there is at least one Israeli resident in the picture of a trust (with the potential exclusion of those within their 10-year exemption for new or returning residents). The next few
Feel free to join the Tax in Israel Facebook group In a somewhat surprising move, the tax authority announced yesterday that they have sent out letters to approximately 1,700 people whom they think might be eligible for a tax refund in respect of the 2012 year. This is of course
The decrease in the rate of VAT (from 18% to 17%) is coming into effect on 1 October 2015. Prices need to be updated at that time. How does this affect a business’ reporting requirements? With regards to expenses, ensure that you take the VAT as shown on the tax
Three stories of interest from the last few days: (1) The threshold above which you can no longer remain an osek patur (see here) magically increased to 100,000 NIS. And according to the tax authority website, this came into effect as of 1st January 2014! Needless to say that this
At the very last minute, the tax authority announced today that they are extending the deadlines for the short or anonymous disclosures within the Voluntary Disclosure scheme. You can read more here. At present, the revised deadline has yet to be announced, although my best guess is that it will
An Israeli Resident Trust is a trust that doesn’t meet any of the other definitions of trust types, described in the previous posts. As such, it includes situations whereby: The settlor was Israeli resident when the trust was settled and remains so, and there is at least one Israeli resident
A testamentary trust is one whereby the trust comes into existence as a result of the will of an Isrseli resident upon the death of the settlor. Such a trust is taxed based on the residence of the beneficiaries. If none of the beneficiaries are Israeli resident, the trust is
The Israeli Resident Beneficiary Trust This is any trust whereby the settlor is a non-resident of Israel and has been since settling the trust. Furthermore, at least one beneficiary is an Israeli resident in the current tax year. If there is a family relationship between the settlor and beneficiaries, the
The default position (except for the Family Trust, as mentioned here) is that the trust itself is liable to pay the taxes on the trust income. It is the trustee who is required to file the tax returns and who is responsible for ensuring that the taxes are actually paid.
