Category Taxation in Israel

Property Taxes Shut Doors of Church of the Holy Sepulchre

February 26, 2018 Taxation in Israel

Church of the Holy Sepulchre, Jerusalem, IsraelJERUSALEM – Property taxes and land sales are at the centre of a growing dispute at one of the holiest Christian sites in Israel.

A dispute is escalating in Israel between Church of the Holy Sepulchre in Jerusalem and the national and municipal government, with taxation being at the centre of the disagreement.

The current culmination of the disagreement was the temporary closure of the Church to visitors, which was done as a protest by the Church against its perceived mistreatment by the state.

New regulations which are being enacted would remove the tax break currently enjoyed by the Church on all its properties.

The Jerusalem municipal authority is claiming that church-owned businesses and property which are not used as houses of prayer should not be able to enjoy a break from local p...

Read More

Israel Clarifies That Cryptocurrency is Not a Currency

February 20, 2018 Taxation in Israel

bitcoin taxTEL AVIV – Cryptocurrency will be taxed as an asset in Israel, meaning that miners will now be considered to be factories.

The Tax Authority of Israel has issued new guidelines on the taxation of cryptocurrency, confirming that profits made from coins will be subject to VAT and capital gains tax.

It was confirmed that cryptocurrency will be regarded as an asset and not a currency for the purposes of taxation.

Due to the consideration, any profits made from the use of cryptocurrency will fall under the scope of capital gains tax, levied at a rate of 20 percent to 25 percent.

Businesses involved in the sale of cryptocurrency or carrying out transactions with cryptocurrency will also face VAT on the transaction, however, that will not extend to private investors.

As cryptocurrency is to b...

Read More

Israel Slaps Capital Tax on Bitcoins

January 16, 2017 Taxation in Israel

Cryptocurency in IsraelTEL AVIV – Transactions involving Bitcoins in Israel could be treated as barter transactions, and profits from coin sales could be charged a capital gains tax.

Late last week the Israeli Tax Authority issued a circular detailing the authority’s stance on the taxation of cryptocurrencies, saying that the Bitcoins and other cryptocurrencies shall be treated as assets when sold.

Cryptocurrencies are often considered to fall into a legal grey area for the purposes of taxation, with some countries classifying them as financial instruments, or currency, or an equivalent of a currency, or an asset.

The ITA has now decided that any cryptocurrency sold in Israel shall be regarded as the sale of an asset, and, subsequently, will carry a potential capital gains tax obligation.

The profits made fr...

Read More

Israel’s Hunt For Ghost Apartments Not Succeeding

November 17, 2016 Taxation in Israel

Empty ApartmentTEL AVIV – Israel’s tax on empty property is not seeing the expected results, as authorities are unable to locate the empty apartment.

On November 15th the Knesset of Israel revealed that the new tax on “ghost apartments” has not had the intended effect, with only a small portion of taxpayers who should be required to pay the tax being made aware of their obligations.

Earlier this year the government of Israel enacted a new regulation which required that a taxpayer pays double the standard rate of property tax on vacant residential property.

The rate for these so-called “ghost apartments” is ILS 223.56 per square meter of the apartment.

It is estimated that there may as many as 48 000 empty residential apartments in Israel, with a significant portion belonging to overseas owners ...

Read More

Rent in Israel Could Increase with New Tax Rules

August 10, 2016 Taxation in Israel

Jerusalem propertyTEL AVIV – New tax rules in Israel could lower the price of buying a new apartment, at the potential cost of raising the price of rent in the country.

Property experts in Israel are warning that newly proposed regulations on the taxation of apartments could lead to a dramatic increase in rental prices across the country.

The new rules, which were put forward by the national Minister of Finance Moshe Kahlon, would see owners of three or more apartments pay a new monthly tax.

The amount of tax to be paid will be set at 1 percent of the value of the apartment, with the value to be determined by the government.

The tax would be capped at either ILS 1 500 per month, to a maximum of ILS 18 000 per year.

The government believes that such a tax would encourage owners of several apartments to sel...

Read More