Israel: Finance committee approves additional tax on financial institutions

March 06, 2024

On 4 March 2024, the Finance Committee of Israel’s parliament (Knesset) passed a measure to impose a 6% tax on financial institutions holding assets equivalent to at least 5% of the total assets held by Israeli banks. This additional tax will be

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Israel to raise bank taxes to 26% in 2024 and 2025

January 18, 2024

On 15 January 2024, Israel's Ministry of Finance proposed to increase the tax rate on bank profits from 17% to 26% in both 2024 and 2025. At present, banks and other financial institutions pay a 17% VAT-equivalent tax on their total payroll and

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Israel releases Guidance on MAP and APA procedures

August 21, 2023

On 17 August 2023, the Israel Tax Authority (ITA) released Tax Circular No. 1/2023, which provides guidance for mutual agreement procedure (MAP), and bilateral advance pricing agreement (APA) requests. The new circular replaces the guidance of

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Israel publishes a new CbC Notification form

February 09, 2023

The Israeli Tax Authority (ITA) has recently released a new Notification Form 1585 for the disclosure of information related to Country-by-country reporting (CbCR). This includes providing details on group revenues, identifying the Ultimate Parent

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Israel publishes guidance on CbC reporting

January 18, 2023

The Israel Tax Authority (ITA) has released guidelines and Technical instructions for the filing of Country-by-Country (CbC) reports. Multi-National Enterprise (MNE) groups with a combined revenue of ILS 3.4 billion and above, starting from the 2022

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Israel: Peer Review on Transparency and Exchange of Information

November 12, 2022

The second stage, phase one peer review report on Israel’s implementation of standards on the exchange of information on request was published by the OECD on 9 November 2022. The first review noted that although a regulatory framework was in

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Israel gazettes amendments to transfer pricing regulations

October 24, 2022

On 22 September 2022, the Israeli Official Gazette published the Income Tax Regulations 2022, amending the Income Tax Ordinance, which adopted on 30 June 2022 for the introduction of the three-tiered transfer pricing documentation requirements of

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Israel introduces three-tiered TP documentation requirements

July 20, 2022

On 30 June 2022, the Israeli Parliament passed legislation to amend Section 85A of the Income Tax Ordinance (ITO) and its regulations, by introducing three-tiered transfer pricing documentation requirements of BEPS Action 13. The legislation

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IMF: Report Considers Israel’s Economic Situation

March 21, 2022

On 21 March 2022 the IMF published a report on Israel following discussions under Article IV of the IMF’s articles of agreement. Israel’s economy has withstood the shocks of the crisis caused by the pandemic. Government support was available

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IMF report on Israel’s economy recommends tax changes

February 08, 2022

On 7 February 2022 the IMF published a report on Israel’s economy following discussions under Article IV of the IMF’s articles of agreement. The IMF notes that Israel managed the pandemic well, providing effective government support to the

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Israel approves three-tiered TP documentation requirements

August 15, 2021

On 5 July 2021, the Israeli Ministry of Finance announced the approval of proposed amendment to the Transfer Pricing (TP) provisions of the Israeli Income Tax Ordinance (ITO). The amendment proposal introduces the three-tiered TP documentation

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OECD: Peer review reports under BEPS Action 14

April 17, 2021

On 15 April 2021 the OECD released peer review assessments under Action 14 of the project on base erosion and profit shifting (BEPS) which aims to make dispute resolution mechanisms more effective. These stage two monitoring reports relate to

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Israel extends tax return submission deadline for the 2020 tax year

April 17, 2021

On 7 April 2021, the tax authority of Israel declared the extended deadline for submitting annual income tax returns in response to the Covid-19 pandemic. The declaration includes that the deadline is extended to 30 June 2021 for submitting annual

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Israel introduces depreciation relief

November 15, 2020

On 9 November 2020, the Finance Committee of the parliament approved regulations regarding depreciation relief in response to the Covid-19 pandemic. The regulations include the straight-line depreciation rates for assets that purchased from 1

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Israel issues draft bill to amend transfer pricing documentation requirements

October 18, 2020

On 12 October 2020, the Israeli Tax Authority (ITA) published a draft bill for public consultation, proposing to amend Section 85A of the Income Tax Ordinance (ITO) and its regulations. The proposal incorporates the principles of the OECD’s

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Israel extends annual tax return deadline

October 10, 2020

On 30 September 2020, the Israeli Tax Authority (ITA) has declared an extension of the deadline for submitting annual tax returns. The release indicates that the deadline is extended to 31 October 2020 for the submission of returns through online

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Israel: New Tax Circular on burden of proof related to TP audits

June 15, 2020

On 2 June 2020, the Israeli Tax Authority (ITA) published tax circular 1/2020 addressing the situations in which a transfer pricing (TP) study that is filed by a taxpayer will be considered as meeting the Israeli TP standards in accordance with

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Israel: Tax measures amid COVID-19 outbreak

March 31, 2020

On 22 March 2020, the Israel Tax Authority (ITA) has declared several tax measures in response to the COVID-19 pandemic. The tax Authority extended the corporate income tax return submission deadline for the fiscal year 2019 to 30 July 2020 and

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