Insights & News / Alon Davidovich

The purpose of the draft bill is to increase transparency in the Israeli tax system in order to avoid a negative assessment of the State of Israel by the Global Forum for Transparency and Exchange of Information, as well as to increase efforts to combat unreported capital.

As a rule, employers in Israel that provide company cars for their employees’ use must attribute income to those employees in accordance with the imputed value of the use of the car prescribed in the Income Tax Regulations. Moreover, even if the car was in the employee’s possession for only part of the month, employers must attribute income to the employees for the full imputed value of the use of the car. However, the Israel Tax Authority has issued new special instructions because of the Swords of Iron War.

After lengthy discussions, the Knesset approved a wartime compensation outline for businesses. The outline offers compensation of up to a maximum of ILS 1.2 million to businesses with annual turnovers ranging between ILS 12,000 and ILS 400 million.

Legitimate tax planning or an artificial transaction to reduce tax liability? Israeli court ruling on a dividend distribution prior to a sale of shares or holdings of a company.

The Israel Tax Authority is publishing a series of tax reliefs to help companies and individuals and the current defense and civilian efforts.

Israel’s new "Angels Law" grants tax benefits to investors in Israeli startups, and in the Israeli high-tech industry in general, with the goal of spurring the growth of high-tech companies based in Israel or whose intellectual property is registered in Israel.

A sale of intellectual property between related parties requires advance planning and preparation in order to avoid tax exposures in Israel.