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Immigrating or Returning to Israel? - Tax Benefits to New and Returning Residents

January 2011 - Tax & Private Client. Legal Developments by Gornitzky & Co.

More articles by this firm.

As part of Israel's 60th anniversary, an extensive tax reform was recently enacted, making Israel an attractive tax jurisdiction for individuals becoming Israeli residents for tax purposes (whether arriving for the first time or returning to Israel after a certain period of time abroad). This brief memorandum introduces the primary tax benefits applicable to new and returning residents.

Tax Law: The Pi-Glilot Case – Allowing Tax Deduction in connection with Dividend Distribution

In October 2008, the Israeli Supreme Court issued a precedent setting decision in the case re Pi-Glilot Oil Terminals and Pipes Ltd. (the Pi-Glilot case). The Court decided that, under the certain circumstances of this case, financial expenses due to a loan for the purpose of dividend distribution will be eligible for deduction.