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Miss Sahara Kaplan, will attend to you
(in English) at Phone No. +972 3 546 88 88
In case of emergency, call Gabriel Hanner
at his
cellular: +972 50 552 33 33
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CHAPTER FOUR: FOREIGN RESIDENTS
68. Repealed
Conditions for granting relief to foreign residents
68A. (a) A foreign resident body of persons shall not be entitled to tax relief,
reductions or exemptions under this Ordinance because of its being a
foreign resident, if Israel residents are controlling members of it, or are
the direct or indirect beneficiaries of or entitled to 25% or more of the
income or profits of the foreign resident.
(b) The Minister of Finance may prescribe ways of proof for the purposes of
this section.
(c) In this section:
"means of control" and "together with another" – as defined in section
88;
"controlling members" – shareholders who directly or indirectly, alone,
with another or together with another Israel resident, hold more than
25% of one or more of the means of control.
Appointing a representative
68B. (a) If, under section 60 of the Value Added Tax Law, a foreign resident is
required to appoint a representative, then he shall appoint as
representative – also for the purposes of the Ordinance – an individual
Israel resident or an Israel resident body of persons that has a business
in Israel.
(b) The representative shall be authorized to report to the Assessing Officer,
to accept income and profits for the foreign resident, and to pay the tax
that the foreign resident must pay only out of the foreign resident's
assets.
(c) If the foreign resident did not appoint a representative as said in
subsection (a), then the representative appointed under the Value
Added Tax Law shall be his representative for the purposes of the
Ordinance.
(d) The Minister of Finance shall, with approval by the Knesset Finance
Committee, prescribe provisions for the implementation of this section
and also provisions on the returns the representative must submit.
98
Non-residents
69. The Minister of Finance may make rules in respect of individuals who are not
Israel residents, in order to prescribe –
(1) what deductions and credits may be allowed a said individual;
(2) the individuals or the categories of individuals to whom those deductions
or credits shall apply.
Exemption of foreign resident ship owner
70. The profits of a person who is not an Israel resident and who engages in the
business of a ship owner or ship charterer (in this Ordinance: foreign resident
ship owner) are exempt of tax, to the extent that the exemption was
determined by agreement between the state to which the foreign resident ship
owner belongs and the State of Israel, or if the Minister of Finance certified
that
that state acts as if an agreement providing for the said exemption were in
effect between that state and the State of Israel.
Profits of foreign resident ship owner from Israeli cargo
71. Subject to the provisions of section 70, the entire profit of a foreign
resident
ship owner whose owned or chartered ship calls at an Israel port, which was
derived from the carriage of passengers, mails, domestic animals or goods (all
hereafter: cargo) loaded in Israel, shall be deemed income produced in Israel;
this provision shall not apply to goods brought to Israel only for
transshipment.
Calculation of profits of foreign resident ship owner with certificate
72. (a) If a foreign resident ship owner produces a certificate from any income
tax authority, certifying the following two data:
(1) the ratio of his profits or losses from shipping business during any
accounting period, as computed by that authority for income tax
purposes and without deducting depreciation, to his total receipts
from the carriage of cargo;
(2) the ratio of the amount of deducted depreciation, as computed by
that authority, to his total receipts from the carriage of cargo;
then his profits derived in Israel from shipping business for that period,
before deducting any depreciation, shall be an amount proportional to
his receipts from the carriage of cargo shipped in Israel, as is the ratio of
his total profits according to the certificate, for that period, to his total
receipts from the carriage of cargo.
(b) The said certificate shall be one issued on behalf of any income tax
authority, with regard to which the Assessing Officer is satisfied that it
computes and assesses the ship owner's full profits from his shipping
business on a basis that is not materially different from that prescribed
by this Ordinance.
Calculation of profits of foreign resident ship owner in other cases
73. If, when the assessment is made, the provisions of section 72 cannot for any
reason be applied satisfactorily, then the profits derived in Israel may be
calculated as a fair percentage of the full amount of receipts from the carriage
of cargo loaded in Israel; however, if any person was assessed in any tax year
on the basis of such a percentage, then he shall be entitled to demand – at
any time within six years after the end of that tax year – that his tax
liability for
that year be recalculated on the basis prescribed in section 72.
Ship on a casual call
74. If the Assessing Officer decides that a ship that belongs to a particular
foreign 99
resident ship owner called at a port in Israel incidentally and that further
calls
by that ship or others under the same ownership are improbable, then the
provisions of sections 71 to 73 shall not apply to the profits of that ship and
no
tax shall be charged on them.
Air transport and wireless communications
75. If a foreign resident carries on the business of air transport or the
business of
transmitting messages by cable or by wireless telegraphy, then he shall be
assessable to tax as if he were a foreign resident ship owner; the provisions of
section 70 to 73 shall apply, mutatis mutandis, to the computation of the
profits
or earnings of such business.
Foreign journalist and foreign sportsman
75A. The Minister of Finance may, with approval by the Knesset Finance
Committee, make regulations on the deductions and credits to be allowed
foreign journalists from journalistic work, as well as on the tax rate
applicable
to the said income, and he may also make aforesaid regulations in respect of
foreign sportsmen on their income from sports activity; for this purpose:
"foreign journalist" – a foreign resident registered with the Foreign Press
Association of Israel, who came to Israel in order to engage in journalistic
work, his income from journalistic work being received from a foreign resident;
"journalistic work" – the preparation of journalistic articles for periodicals
or of
reports broadcast by electronic mass media, or assistance in the preparation of
aforesaid reports;
"foreign sportsman" – a foreign resident who came to Israel in order to
engage in sports activity;
"sports activity" – regular participation in games and sports competitions, in
training or in preparation for them, other than activity as a trainer in the
sphere
of sports, all in an Israel sport association or sport club.
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Miss Sahara Kaplan, will attend to you
(in English) at Phone No. +972 3 546 88 88
In case of emergency, call Gabriel Hanner
at his
cellular: +972 50 552 33 33
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|
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