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
Feel free to join the Tax in Israel Facebook group As previously mentioned, tax files in Israel are joint between husband and wife. The question therefore arises as to how joint income is taxed. In this respect, the law differentiates between earned (e.g. salary, self-employment, pension) and passive income. Passive
Feel free to join the Tax in Israel Facebook group Over the last fortnight or so, the tax authority has sent out a number of letters to Israeli residents whom it suspects have not reported of the income that they are thought to receive – and hence not paid the
With much fanfare, the tax authority announced last week a one-page tax return for the smallest of businesses. The form can be found here. The form is designed to allow the smallest businesses – who wouldn’t reach the tax threshold anyway – to just report their income, without the extra
The taxation of pension income is one of the most complicated areas of law due to the various and numerous exemptions available. Fully exempt pensions Pensions which are not subject to tax whatsoever include the Bituach Leumi old-age and bereavement pensions and reparations received by Holocaust survivors. Also fully exempt
Once you have filed your tax return properly (see here for more), the tax authority will issue an assessment of the taxes that you owe based in what you have filed. This is normally on three blue-backed pages (first single-sided and the other double-sided) of A4 size. They also send
