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Insights & News / Tax
January 25, 2018
Israeli Tax Proposals for Blockchain, First Steps to Approval
Adv. Harel Perlmutter, the head of our Tax Department, was interviewed by Bloomberg BNA following the release of the Israel Tax Authority's new draft plan for taxing ICOs.
December 27, 2017
Everything You Need to Know about ICOs
Barnea hosted an ICOs and digital currencies event featuring a lecture on regulation opportunities and challenges. Adv. Harel Perlmutter also discussed the taxation of cryptographic coins and the Israel Tax Authority's position.
December 15, 2017
Israel Arrests Two Individuals for Tax Evasion Linked to Panama Papers Leak
Following the Panama Papers leak, Israeli authorities have arrested two Israelis on suspicion of evading millions of shekels in tax payments by using companies registered in offshore tax havens. Adv. Harel Perlmutter, a partner and head of our Tax Department, commented to Bloomberg BNA that even though many Israelis were named in the leaked documents, most of them appear to have been using the offshore havens for reasons other than tax evasion.
November 28, 2017
Important Real Estate-Related Legal Decisions in 2017
Adv. Ariel Nadler, head of our firm's Real Estate Department, was interviewed by TheMarker's real estate magazine on the cancellation of the Multiple Housing Taxation Law by the Supreme Court. Ariel commented that regulators will now have to provide a solution to those people who already sold their apartments in order to enjoy the tax benefit that was guaranteed. He also noted that the cancellation will affect apartment owners considering to sell.
November 20, 2017
Workshop: Guidelines for Equity-Based Plans
Barnea, together with barneaXcrossing and ESOP Excellence, is hosting a morning workshop today on equity-based compensation plans for entrepreneurs and technology startups. Adv. Micky Barnea, our managing partner, will discuss share option plans for partners and employees.
October 4, 2017
Israeli Banks Told to Scale Back Overseas Activities After US Tax Evasion Scandal
Adv. Harel Perlmutter, a partner and head of Barnea’s Tax Department, was interviewed by Bloomberg BNA following the Bank of Israel’s call for Israeli banks to reassess their strategies for overseas operations. Harel noted that the Bank of Israel’s Supervisor of Banks aims to maintain a strong banking system, even if this means reducing banks’ profits from overseas activities.
August 29, 2017
Walla! Interview on Investigation into Former Bank Leumi Officials
We were interviewed by Walla! about a criminal investigation into former Bank Leumi officials in connection with a US tax fraud scandal. We noted that we expect US investigators to work closely with their Israeli counterparts through the Ministry of Justice’s international legal assistance framework.
February 8, 2017
Head of Deutsche Bank Israel Detained on Suspicion of VAT Offenses
Adv. Harel Perlmutter, head of our Tax Department, was interviewed by Tax Analysts following the arrest of the chief executive of Deutsche Bank’s Israeli operations on suspicion of violating VAT law. The Israel Tax Authority alleges that customers whose transactions Deutsche Bank reported as zero-rated on the grounds that they were conducted on behalf of foreign residents were, in fact, Israeli residents. Harel noted that determining whether someone qualifies as a foreign resident for tax purposes can be difficult.
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 by Practical Law. The guide provides 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, lectured today on the taxation of startups at the AtoBe – Azrieli College of Engineering Startup Accelerator.
February 5, 2017
Considering Bitcoin an Asset Could Set Back Usage in Israel
Adv. Harel Perlmutter, head of the Tax Department, was interviewed by Bitcoin.com regarding the Israel 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.
January 25, 2017
Seminar on New Multiple Housing Taxation Law
Barnea will host a morning seminar on February 14 on the new Multiple Housing Taxation Law. Adv. Maya Zisser, a partner in our Real Estate Department, will discuss who is subject to the new tax, the applicable rates, payment methods, exemptions, and credits. Adv. Harel Perlmutter of our Tax Department will discuss opportunities to reduce tax on rental income.
January 24, 2017
Israel Seeks Tax on Bitcoin, Virtual Currency Transactions
Adv. Harel Perlmutter, head of our Tax Department, was interview by Bloomberg on an Israel Tax Authority draft circular on the 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.
December 6, 2016
Expected Amendments to Tax Legislation in 2017
Adv. Harel Perlmutter, head of our Tax Department, interviewed by Ynet on the expected tax amendments going into effect in 2017.
November 10, 2016
Supreme Court Rejects Yaacov Peri’s Demand for Reduced Tax on Exercise of Options
This week, the Supreme Court rejected Yaakov Peri’s claim for a tax reduction on income from exercising options granted by the publicly traded company Lipman Electronic Engineering. Adv. Harel Perlmutter, Head of our Tax Department, told Globes that, during the period at issue, the corporate tax rate was 35%, while the capital gains tax rate for companies was 25%. Today, these rates are identical, so the distinction between the two types of tax no longer affects the applicable tax rate.
August 31, 2016
EU: Apple Ordered to Pay Ireland EUR 13 Billion in Taxes
Adv. Harel Perlmutter was interviewed by leading newspapers about the European Commission’s order requiring Apple to pay EUR 13 billion (USD 14.5 billion) in unpaid taxes to Ireland. Harel noted that the landmark decision could expose Apple to billions of dollars in additional back-tax assessments.
August 30, 2016
Apple Must Pay EUR 13 Billion in Back Taxes to Ireland
Adv. Harel Perlmutter, the head of our Tax Department, was interviewed by several media outlets following the European Commission’s ruling that Apple had received unlawful tax benefits over two decades and was therefore required to pay EUR 13 billion in back taxes to Ireland.
July 27, 2016
Reverse Vesting and Holdback – Good News for Entrepreneurs?
Earlier this month, the Israel Tax Authority stated that proceeds from a founder’s sale of shares should be treated as capital gains rather than ordinary income, regardless of whether the shares were subject to reverse vesting or a holdback arrangement. For entrepreneurs, this position is a double-edged sword.
June 28, 2016
Israel Tax Authority Audits Short-Term Landlords
Adv. Harel Perlmutter, the head of our Tax Department, was interviewed by Globes following the Israel Tax Authority’s announcement of tax audits targeting landlords who offer short-term rentals. Harel explained that these landlords are liable for both income tax and VAT.
May 8, 2016
What to Know About Stock Options
Stock options can help startups recruit, motivate and retain talented employees. In an article recently published on the IDC Legal Clinic for Startups website, we explore the basics of stock options, the process of adopting a stock option plan and the various implementation routes available to companies.