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Latest Updates / Tax
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.
October 4, 2017
Israeli Banks Told to Scale Back Overseas Activities after U.S. Tax Evasion Scandal
Adv. Harel Perlmutter, partner and head of Barnea's Tax Department, was interviewed by Bloomberg BNA, following the Bank of Israel's call on Israeli banks to redefine their strategies for overseas operations. Harel noted that the Supervisor of Banks at the Bank of Israel wants to keep the bank system strong even if it means cutting part of the banks' profits deriving from activity outside of Israel.
August 29, 2017
Dr. Zvi Gabbay Interviewed by Walla! about Investigation into Former Bank Leumi Officials
Dr. Zvi Gabbay, head of the Capital Markets Department at our firm, was interviewed by Walla! about a criminal investigation opened against former Bank Leumi officials in a US tax fraud scandal. Zvi believes American investigators will work closely with Israeli investigators on this case, via the international legal aid apparatus at the Justice Ministry.
June 21, 2017
New Court Decision on Transfer Pricing Taxation
New court decision on transfer pricing taxation may shift structuring of MA transactions from shares to assets.
May 11, 2017
Protecting Your Start-Up with Company Registration in Israel
Israel has long been acknowledged and admired for its vibrant start-up culture, fostered through government investment and pro-business policies. Further, the national focus on business development provides a regulatory structure that protects business owners from creditors and ensures proper structure for the public – incorporation. To take advantage of the corporate structure, you need to ensure that you follow the proper registration process, and select the right corporate vehicle to fit your emerging business model.
April 20, 2017
Few Good Reasons Why You Should Consider Making Aliyah
What do the United States, the UK, France, Germany, Italy, Spain, Switzerland and the Netherlands all have in common? In these countries (and many others), estate tax is collected on large inheritances. These taxes are imposed not only on the money of the deceased, but also on their real-estate properties, shares, pension funds, and other assets.
February 8, 2017
Head of Deutsche Bank Israel Detained on Suspicion of VAT Offenses
Adv. Harel Perlmutter, Head of the Tax department at Barnea, was interviewed by Tax Analysts following the arrest of the chief executive of Deutsche Bank's operation in Israel on suspicion of violating VAT law. The Israel Tax Authority claims that the customers, in respect of whom Deutsche Bank reported its transactions as being zero rated, allegedly because they were conducted on behalf of “foreign residents”, were actually Israeli residents. Harel commented that it is often difficult to determine whether someone is a foreign tax resident.
February 6, 2017
Taxation Factors for Operations Over the Internet
The explosion of e-commerce in the last 15 years has made it easier than ever to manage the logistics of doing business in multiple countries. The global reach it creates, though, has spawned a litany of tax questions. You need to determine which jurisdictions have the authority to tax you and your business activity and what taxes apply. Your physical location and your end-customer locations can impact what you pay to whom, but other factors might also apply. Managing this process is critical to your continued e-commerce operations.
February 5, 2017
Considering Bitcoin an Asset Could Set Back Usage in Israel
Adv. Harel Perlmutter, Head of the Tax Department at Barnea, was interviewed by Bitcoin.com regarding the Israeli Tax Authority’s (ITA) draft on digital currencies. Harel commented that the draft circular is a declaration of intent from the ITA and at this stage no draft legislation has been published.
February 5, 2017
Doing Business in Israel – Practical Law
Doing Business in Israel? A QA guide to doing business in Israel written by Barnea was published in the Practical Law website. The guide gives an overview of the legal system, foreign investment, regulation, and other issues pertaining to Israel.
February 2, 2017
AtoBe – Azrieli College of Engineering Startup Accelerator
Adv. Harel Perlmutter, Head of the Tax Department at Barnea, lectured today on taxation of startups at the AtoBe – Azrieli College of Engineering Startup Accelerator.
January 31, 2017
International Taxation – New Draft Bill Will Require Foreign Companies to Report and Pay Tax in Israel
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.
January 25, 2017
Seminar on the New Multiple Housing Taxation Law
Barnea is conducting on February 14th a morning seminar on the new Multiple Housing Taxation Law. Adv. Maya Zisser, Partner at the Real-Estate Department will lecture on the new tax - to whom does it apply, the tax rate, payment methods, exemptions and credits. Adv. Harel Perlmutter from the Tax Department will lecture on tax saving opportunities in respect of rental income.
January 24, 2017
Israel Seeks Tax on Bitcoin, Virtual Currency Transactions
Adv. Harel Perlmutter, Head of the Tax Department at Barnea, was interview by Bloomberg regarding a draft circular of the Israel Tax Authority on taxation of virtual currencies (bitcoins and the like). Harel commented that the draft imposes almost insurmountable restrictions on the use of virtual currencies in Israel, due to the liabilities and costs involved.
January 22, 2017
Draft Circular on Taxation of Activities Using Virtual Currencies
The Israel Tax Authority published a draft circular on taxation of virtual currencies (bitcoins and the like). According to the Draft, the ITA’s position is that virtual currencies should be deemed “assets” and not as currency or foreign currency or even as financial instruments.
January 19, 2017
Important Information about New Tax on Owners of Multiple Apartments
The new law prescribes that, as of January 1, 2017, every taxpayer must pay tax annually (January through December) for every residential apartment that he owns in excess of two apartments, at the sum defined pursuant to the provisions of the law. The taxpayer will be allowed to choose which of his apartments he deems to be his first two apartments, and which shall be taxable under this law.
December 11, 2016
“Wallet Companies” – Draft Tax Bill within the Scope of the Arrangements Law for 2017 - 2018
Recently, the Finance Committee concluded its deliberations regarding the imposition of tax legislation pertaining to “wallet companies” within the scope of the Arrangements Law for 2017 – 2018.
December 6, 2016
Expected Amendments to Tax Legislation in 2017
Adv. Harel Perlmutter, Head of the Tax Department at Barnea was interviewed by Ynet regarding the expected tax amendments going into effect in 2017.
November 10, 2016
The Supreme Court Rejected Yaacov Peri’s demand for Reduction From tax payable on an Exercise of Options
This week the Supreme Court rejected Yaakov Peri's demand for a tax reduction from the tax authorities from an exercise of options received by the public company, Lipman Electronic Engineering. Adv. Harel Perlmutter, Head of the Tax Department at Barnea was interviewed by Globes and noted that during the period in which the controversy arose, there was a difference between corporate tax (35%) and capital gains tax (25%) for companies. Today, when the tax rates are identical, there are no implications arising from the nature of the tax imposed on the taxpayer.
September 5, 2016
For the First Time, Tax Relief Has Been Approved for Contributions to an Israeli NPO Operating Abroad
In an unprecedented action, the Knesset Finance Committee has recently recognized an Israeli organization operating abroad as a ‘public institution’ pursuant to section 46 of the Israeli Income Tax Ordinance. Such recognition affords the non-profit organization, a tax benefit, by way of a tax credit to donors for their donations granted to that organization.