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Latest Updates / Tax
October 30, 2024
Amendment to Income Tax Rules on Employee Equity
On September 17, an amendment to the Income Tax Rules (Relief in Issuance of Shares to Employees) was officially published, approximately 20 years from the last amendment. The amendment will enter into force on January 1, 2025 and will mainly affect the processes of approving equity incentive plans and of reporting to the Israeli Tax Authority.
October 27, 2024
Extension of Purchase Tax for Investors - Interview with Maya Carmi
The Ministry of Finance intends to extend purchase tax for investors, currently set at 8%, as part of the Arrangements Law for 2025, which has led to strong opposition from contractors. Adv. Maya Carmi from our firm was interviewed by Yedioth Ahronoth and stated that the purpose of freezing the tax rate is to disincentivize investors from purchasing apartments, thereby increasing the supply of available apartments and reducing prices, which would allow young couples and people from lower socio-economic backgrounds to buy homes.
October 14, 2024
Taxing of Apartment Purchases in Buildings Slated for Demolition
The district court’s position in its recent ruling in the Ahuzat Allenby Ltd. case has significant implications for investors, developers and private individuals who purchase apartment buildings slated for demolition and are looking to change the zoning of the purchased properties.
October 9, 2024
Appeal Rejected – Coca-Cola Expected to Pay ILS Hundreds of Millions to the State
Adv. Hanna Daher, a partner in our firm’s Tax Department, describes in an op-ed for N12 the precedent set by the court's ruling in the Coca-Cola case. Hanna notes this decision could prompt Israeli companies to reassess their agreements and contractual arrangements with foreign entities.
October 1, 2024
Tax Innovations in Israel in 2024
Over the past year, alongside handling the economic repercussions of the war and issuing financial assistance to war victims and to evacuees, the courts, the legislative authority and the Israel Tax Authority continued their efforts in the legislative arena and issued several significant tax rulings. Following are the most important innovations relating to income tax, real estate tax and VAT.
August 27, 2024
Real Estate Taxation: Tax Aspects in Realizing Real Estate Rights
Adv. Maya Carmi Lubartovski, head of our firm’s real estate taxation practice, participated in another episode of the ACC podcast series. The new episode covers the tax aspects of cash transactions, combination transactions, construction services transactions, the tax advantages and disadvantages of different transaction structures, and more.
August 20, 2024
Real Estate Taxation: Key Things to Know When Conducting a Real Estate Transaction in Israel
As an expert in the field of real estate taxation, our firm's Adv. Maya Carmi was a guest on the ACC podcast series, providing clarity on all aspects of real estate taxation. The first two podcasts, uploaded yesterday, focus on capital gains tax and purchase tax.
August 19, 2024
Singapore-Based Prytek Acquires TipRanks at USD 200 Million Valuation
Advs. Ariella Dreyfuss and Rahaf Awawdi represented TipRanks in a transaction whereby Prytek acquired an additional 40% stake in TipTanks, becoming its controlling shareholder. In 2021, TipRanks raised USD 77 million, partially through a secondary offering led by Prytek. This transaction was also handled by the firm, with Adv. Hanna Daher assisting in all tax aspects.
August 4, 2024
Israel: Improved Purchase Tax Benefit for New Immigrants
The amended regulations, expected to come into effect in August 2024, improve the tax benefit track for new immigrants who are purchasing a first residence and are more lenient than the purchase tax track to which every Israeli resident is entitled when purchasing a first residence.
June 30, 2024
Walla: Maya Carmi Lubartovski Discusses Important Details of Gifting an Apartment
No takebacks, receiving nothing in return, and a cooling-off period—gifting an apartment to a relative offers significant tax advantages. However, it is crucial to fully understand the consequences of this move for both the giver and the recipient of the gift.
June 16, 2024
New Israeli Court Ruling on Artificial Transactions
Under what circumstances will a court rule a transaction is an artificial transaction for tax purposes? In the case of Shalam Packaging Products Group, the district court rejected the tax assessor’s claims and ruled that the group’s restructuring was a legitimate business action and that the group did not execute the restructuring merely to reduce tax liabilities.
June 16, 2024
Real Estate Taxation Updates: Maya Carmi's Interview with Bizportal
Maya Carmi Lubartovski, the head of our firm's real estate taxation practice, was interviewed by Bizportal about the Israel Tax Authority's planned updates in the real estate taxation field. Among other things, she discussed the consequences of higher purchase tax rates for second apartments and giving apartments as a gift.
June 2, 2024
Class Action: Depreciation from Apartment Purchase Value
An Israeli court ruled that the Israel Tax Authority overcharged apartment sellers who rented out their apartments under the tax-exempt track up until their sale, by a total of more than ILS 100 million. This ruling has major consequences, since the State treasury will be forced to refund the tax overcharges to the apartment sellers who are part of the relevant class. The Israel Tax Authority is expected to appeal the ruling.
May 28, 2024
What Are the Tax Aspects of Prenuptial Agreements in Israel?
Signing a prenuptial agreement has a critical impact not only on the division of property upon divorce, but also on the taxes a couple pays during marriage. It is important for couples to understand the economic advantages inherent in signing a prenuptial agreement and draw one up accordingly.
May 13, 2024
Tax: Classification of Intercompany Transactions
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.
April 1, 2024
Draft Bill: Increasing Transparency in Israeli Tax Law
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.
March 26, 2024
International Inheritance Tax Planning: Harel Perlmutter Interview on “Disputes Program”
Harel Perlmutter, head of our firm’s Tax Department, was interviewed by Yigal Borochovsky and Rachel Shahar for 102FM’s “Disputes Program.” He explained the procedures and necessary reporting when receiving an inheritance from outside of Israel.
March 24, 2024
Supreme Court: Service to Foreign Residents May Be Subject to Full VAT
The Supreme Court noted that, by its nature, the essence of a brokerage transaction is joining two parties into one transaction. Therefore, treating the transaction as providing a service to each party separately—a foreign resident and an Israeli resident—does not reflect the true economic essence of the service.
February 15, 2024
Imputed Value on Usage of Company Car as Income during Swords of Iron War
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.
January 21, 2024
The Israeli food producer Osem is continuing to transfer intellectual property rights to Nestle
Yuval Lazi and Harel Perlmutter were interviewed by Globes about the transfer of Osem’s intellectual property rights to Nestlé. They explained how this transfer is likely to affect the State of Israel.