יום חמישי, 10 בנובמבר 2011
Source rules - Israeli Tax Law
The purpose of source rules is to determine the place of income accrual. The importance of these rules for residents of Israel is mainly the issue of credit for foreign tax. As for foreign residents and foreign corporation, the importance of source rules is mainly in determining the right for taxation in Israel. The income of a foreign resident or foreign corporation will be taxed in Israel only if accrued in Israel. Articles 4A and 89(B)(3) of the Israeli Tax Ordinance establish the place of accrual of the various incomes.
For more information see: Source rules in Israeli Tax Law