Welcome to the KPMG Israel Blog. We aim to bring you insights and opinion from our partners and industry experts.
In line with many other countries around the world, Israel’s Parliament, the Knesset, passed a this month aimed at narrowing the government deficit. Following on the heels of a tax hike at the beginning of this year, increases in personal tax rates, to take effect from January 1, 2013 were generally modest involving 1% increases to certain tax brackets while effectively leaving lower to medium income earners unaffected.
Anyone owning more than one residential property in Israel could not fail to have observed the drunken roller coaster of emergency legislation on that issue over the last 18 months. It all started with an initiative by the authorities to use tax incentives to bring more liquidity to the residential property market where there was an acute shortage of apartments for sale.
The fog is starting to clear on an issue that has attracted a lot of media attention lately. Rumors were flying around for months that the Income Tax Authorities were about to grant, for a limited period only, enhanced tax benefits on income of companies already enjoying tax benefits.