The Israeli
parliament approved Legislation on Bank Information exchange, which was
initially published as part of the fiscal sections of the proposed Law on the
Economic Arrangements accompanying the 2015-2016 Budget. The Legislation on
Bank Information exchange expands the right of the Israeli Tax Authority to
exchange information internationally. The Legislation on Bank Information
exchange will allow Israel to meet, among others, its obligations under the
Israel - United States FATCA Model 1A
Agreement that was signed on June 30, 2014, and the Standard for Automatic
Exchange of Financial Information of the OECD, known as the CRS or the Common
Reporting Standard. See more, here: Israeli Legislation on Exchange
of Information
See also:
Dr. Avi Nov Law Offices, Israeli &
international tax law
*This article is intended for
informative purposes only and is in no way to be construed as tax advice or a
legal opinion
The
Tel Aviv District Court ruled recently in the tax case law of Kontera
Technologies Ltd on the application of employee stock option in cost plus
agreements. This issue is relevant for Israeli research and development
companies that service foreign related companies on a cost plus basis. In the
Kontera case, the judge, Magen Altuviah, ordered that expenses incurred by an
Israeli subsidiary of a US parent in relation with an employee stock option
plan should be included in the cost basis in calculating the cost plus payment
despite the fact that such expenses are disallowed as tax deductions for
Israeli tax purposes. The court accepted the position of the Israeli Tax
Authority in this case, which resulted in a significant increase in the
taxable income of the Israeli R&D subsidiary. For more information, see - Israeli Tax Update: the Kontera
Case
A recent case law by the Tel Aviv District
Court (Leshem vs. Tel Aviv Assessing Officer) clarifies the issue of Israeli
tax on rental income from apartments. The question usually asked by many
property-owners, including foreign
residents that own property here, is how many
apartments will be considered passive income, under Israeli tax law? For more
details, see: New Israeli
Case on Rental Income
