Israel: Draft amendment to the ITO published for public comments
The Finance Ministry has published a draft amendment to the Income Tax Ordinance (ITO) on 22nd November 2015 for public comments. It provides a reduction of the corporate income tax rate from 26.5% to 25% as from 2016. The deadline for public
See MoreIsrael: VAT rate reduced
A Ministerial Order was issued on 10th September 2015 regarding reduction of the VAT rate to 17% from 18%. This new rate will be effective from 1st October
See MoreSocial Security Agreement between Israel and Italy ratified
By way of Law No. 98, the Social Security Agreement (2010) between Israel and Italy has been ratified on 18th June 2015 by Italy. Once in force and effective, this new agreement will replace the Social Security Agreement
See MoreSocial Security Agreement between Israel and Moldova negotiated
The negotiations of Social Security Agreement between Israel and Moldova were held on 24th March 2015 and it is wished to be signed
See MoreIsrael: Implementation of the automatic exchange of financial account information
The Finance Ministry has introduced on 27th October 2014 that Israel may begin the implementation of the automatic exchange of financial account information by the end of 2018. For the automatic exchange of information, financial institutions will
See MoreIsrael: Details of Budget for 2015
The government has approved the 2015 Budget proposal on 7 October 2014, which will now be transferred to the parliament for its enactment. A 10% tax rate would be charged on payments to illegal immigrants. Payments regarding conclusion of service
See MoreIsrael: Central Bank calls for fiscal restraint
The Central Bank in Israel has issued an economic policy due to warn to the Government, cautioning that the introduction of VAT splits without compensatory tax hikes will push the discrepancy to as high as 4% of GDP against a target of 2.5%. On the
See MoreGermany-Israel details of ICTT publishes
The Income and Capital Tax Agreement (2014) between Germany and Israel has published in detail. The treaty was accomplished in the German, Hebrew and English languages and it follows the OECD Model. The maximum 10% withholding rates are applied on
See MoreIsrael-Germany new Income Tax Treaty signed
The new Income Tax Treaty between Germany and Israel has signed on August 21, 2014 that will replace the Germany - Israel Income Tax Treaty (1962), as amended by the 1977 protocol. Further details of the new treaty will be reported
See MoreIsrael–Panama Income Tax Treaty enters into force
The Income Tax Treaty (2012) between Israel and Panama has entered into force on June 30, 2014 and this generally applies from January 1, 2015 for withholding and other taxes and from June 30, 2011 for the exchange of information. Details of the
See MoreUS-Israel FATCA agreement details
The US Treasury Department has published the official text of the intergovernmental agreement (IGA) between the United States and Israel that was signed on June 30, 2014 for implementation of the Foreign Account Tax Compliance Act (FATCA). The
See MoreIsrael and US FATCA agreement signed
The Israel - United States Foreign Account Tax Compliance Act (FATCA) Agreement (2014) was signed on June 30, 2014. Further details of the agreement will be reported
See MoreIsrael-Panama: DTA ratified by Israel
Israel has ratified the Double taxation Agreement between Israel and Panama on May 26,
See MoreIsrael: New Case Law on Tax Residency
The High Court of Justice gave its decision on June 12, 2014, in the case of: Michael Sapir vs Kfar Saba Assessing Officer, about the tax residence of a married individual. The Court supported the District Court decision that the taxpayer was a
See MoreRussia: Clarification of tax treatment of income derived from alienation of immovable property
The Ministry of Finance has issued Letter No. 03-08-05/13287 on March 26, 2014 describing the income tax treatment derived by an Israeli individual from alienation of an immovable property situated in Russia. Article 6 of the Israel - Russia Income
See MoreIsrael and US Reach FATCA Agreement
Israel and the US have agreed on the wording of an intergovernmental agreement (IGA) that will enable the provisions of the US Foreign Account Tax Compliance Act (FATCA) to be carried out in Israel. The FATCA takes effect from 1 July 2014 and from
See MoreIsrael: High Court of Justice rejects petition to deny “foreign resident” VAT status from multinational internet companies
The High Court in Israel has rejected a petition asking the Court to order the Finance Minister and tax authorities to impose VAT on cross border services delivered electronically and on products of foreign companies sold in Israel. The Court
See MoreLuxembourg and Israel sign a DTA
Luxembourg and Israel signed a new double taxation agreement on 11 March 2014. No further details of this new agreement are currently
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