August 29, 2023

Introduction to Virtual Currency Tax Implications The term “virtual currency” can be deceptive. Despite the fact that it contains the word “currency,” it is not a recognized currency under the Israeli tax regulations. For example, whereas transferring one kind of traditional currency for another (e.g., shekels for dollars) does not result in a taxable event […]

Many Israelis holds foreign bank accounts abroad including  in Switzerland, Germany, Spain, and the United States. These accounts frequently generate income, such as capital gains, interest, and dividends. While Israeli tax law requires residents to pay taxes on this income, there is no automatic withholding tax from  income derive from overseas accounts. Failure to disclose

One of the most appealing purposes of voluntary disclosure procedures in Israel is the criminal immunity it provides. These procedures ensure that taxpayers’ applications will be handled civilly, effectively avoiding the prospect of criminal sanctions. This procedure has proven to be effective over time. Despite Israel Tax Authority’s claim to provide protection from criminal prosecution,

Previous Voluntary Disclosure Procedures Israel Tax Authorities launched a scheme in 2005 to detect undisclosed income. The authority pledged that those who voluntarily report their undisclosed incomes would not face criminal prosecution for tax evasion and that their reputations would not be harmed as a result of their actions. However, because this was an initial

Increased Tax Authority Enforcement in Israel The Israeli Tax Authority has increased its efforts against owners of residential units and real estate properties who have neglected to record rental income after years of slack enforcement. If you rent out your property, you must pay income tax on the rental revenue unless the sum is exempted