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A tax assessment dispute in Israel has led to a new court ruling dealing with relationships between subsidiaries in a multinational group and classification of the nature of the business activities that the companies provide to each other.
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.
An amending protocol to the 1962 Israel-UK tax treaty is effective as of January 1, 2020.The protocol includes a long list of significant and fundamental amendments and updates.
The treaty for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income between the government of Israel and the government of the Republic of Serbia is expected to take effect on January 1, 2020.
The Minister of Finance signed in December 2019 the order bringing the double taxation treaty into effect on January 1, 2020.
A double taxation treaty was signed between Israel and Australia in the end of March 2019, after years of prolonged negotiations, expectations, and wonder about the obstacles.
Recently, the Israel Tax Authority published a circular discussing business restructuring in multinational groups.
Israeli signed the The Multilateral Instrument (MLI) Treaty, which will come into effect on January 1, 2019. The treaty will affect both Israeli and international corporations operating in Israel and overseas.
The Israeli Supreme Court recently ruled a judgment on the matter of high-tech companies Kontera Technologies Ltd. and Finisar Israel Ltd. The facts underlying this judgment are relevant to many technology and startup companies in Israel engaged in R&D services with their foreign parent companies, and which their revenue is being calculated using a Cost-Plus method.
The Israel Tax Authority (“ITA”) is promoting legislation that will require foreign companies not subject to the Israeli tax regime today to report and even pay tax in Israel.
