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Latest Updates /  Employee Tax Benefits

November 28, 2022

Tax Aspects of Cryptocurrency-Based Compensation to Employees and Service Providers

The use of token-based compensation has grown in recent years. It is important to understand the tax aspects of such compensation, especially when a company is gearing up for a major deal.

March 5, 2020

Court Rules an Employee whose Shares in a Company Are Held by a 102 Trustee Has No Shareholder Rights in the Company

The Haifa District Court recently held, in a precedential decision, that an employee who received shares in a company held by a trustee in accordance with section 102 of the Income Tax Ordinance has no shareholder rights.

July 17, 2019

Precedential Court Ruling on Option Plans for Employees

A precedential judgment was handed down on option plans for employees in respect of section 102 of the Income Tax Ordinance. The court ruled that when a tax assessor is notified of the allocation of options in accordance with section 102 and fails to respond within 90 days, the plan is approved and the assessor cannot later claim that this is not so, except in very exceptional cases.

December 19, 2018

ITA Sharpens Procedures in Wake of New Tax Circular

Adv. Micky Barnea was featured in a follow-up article in Globes about the Income Tax Authority's new circular that changes the tax policy relating to capital-based compensation dependent on performance. According to Barnea, "The new circular stipulates that options allocated under an approved plan, submitted lawfully to the Tax Authority, may be discovered on judgment day as not being entitled to reduced capital taxation."

December 18, 2018

High-Tech Earthquake: Tax on Exercising Options for Employees Will Increase Upon Exit or Issue

Adv. Daniel Lorber, the head of our firm's Equity Incentives practice field, was interviewed by Globes on the Israel Tax Authority's latest decision. Instead of a capital gains tax rate of 25% on options granted to employees for exercise in the event of an exit or issue, the proceeds from such exercise will now be considered labor income, and therefore the tax liability may rise to 50%.

December 13, 2018

Companies Required to Amend Option Plans

A new circular by the Israel Tax Authority determines the terms for granting options to employees when the vesting of such options is contingent upon performance milestones or the occurrence of an IPO or exit event.

November 20, 2017

Workshop: Guidelines for Equity-Based Plans

Barnea is hosting today together with barneaXcrossing and ESOP Excellence, a morning workshop on equity-based plans for entrepreneurs and technological startups. Micky Barnea, Managing Partner, will discuss options plans for partners and employees.