As part of the 2017-18 budget, the government introduced a new tax on the owners of multiple residential properties, which took effect on January 1, 2017. The tax is levied on the value of the properties, irrespective of their use or rental status/income. It should also be noted that this tax is being administered by the Land Tax Authority, rather than the Income Tax authority. We set out below the basic details of the rules in an FAQ format. Our FAQ below covers the basic details and is based on the law, as well as the guidance provided by

Israeli tax law states that every Israeli resident or household is required to file a tax return every year in a timely way, whether or not taxes are due. The current deadline for filing your 2016 tax return is May 31, 2017 (it may be extended by a month); a late filing may result in hefty monthly penalties. But a supplement to the law grants exemptions from filing if you meet certain criteria; the exemptions are mostly focused on people who will not have to pay additional taxes. Special Circumstances and Who Must File There are, however, households which will be required to

One of the countries with which Israel has signed a treaty on the subject of Double Taxation is the USA. There are some very interesting features affecting those who live in Israel and whom are also US citizens, green card holders, and US (tax) residents (known collectively as US persons). By way of introduction, US persons are subject to US taxation on their worldwide income regardless of where they live in the world. Most other countries in the world would only tax their residents to such an extent, rather than their citizens. The treaty contains sections that relate to different forms of

A few weeks ago, the tax authority published a circular regarding the taxation of trusts, expanding on some of the definitions and rules set down in the revised laws as of 1.1.2014 – and including some important clarifications regarding some of the tax issues that had been raised. The entire thing is over 50 pages, so if you’re bored, take a look at the original here. Here are some of the clarifications given: We discussed in a previous post the issue of tax being paid on trust income by different taxpayers. The circular clarifies that, in almost all cases, the tax paid to a foreign

The currently VD procedure was announced nearly two years ago, and is set to expire at the end of December 2016. The two sub-routes (anonymous/short) have both also been extended to the same deadline. After nearly two years, the first cases have been settled, and more in the process of being settled. So, what lessons are being learned, and what should you be aware of when entering the process? The below items are based on personal experiences, as well as those of colleagues and acquaintances in the field. The initial investigation stage can take anywhere between 1-6 months. Rejections are normally