Fiscal Representation & Tax Compliance

Fiscal Representation
& Tax Compliance

According to the Israeli tax laws, foreign entities who keep permanent business activity in Israel (PE), and wish to establish local tax files, must appoint a Fiscal Representative (FR), who is a local resident and will perform as the company’s representative in front of the Israeli tax authorities. The Fiscal Representative carries, jointly and severally, liability and responsibility for the taxes of the company.

As Fiscal representatives, we make sure our clients are in full Tax compliance. Our firm is appointed as FR for many multinational corporations that carry out local projects or hold different kinds of local permanent establishments for tax purposes in Israel. By taking us on as FR, our global clients achieve the status of an active local VAT registration (Authorized VAT dealer status) and other relevant tax files. Our firm acts as trustee for the global entity at a special designated tax trust bank account, which is necessary to maintain the above.

Our firm keeps extensive experience in this type of operations. We conduct special arrangements that allow the procedure to be carried out in a highly efficient way and meet all the tax authorities’ requirements for the corporation's activities, which are derived from the VAT law and the tax regulations.

We assist with implementation of effective tax planning in the scope provided by the Israeli law combined with other global tax laws and treaties. We advise Israeli and international companies on various tax issues such as: Special tax benefits, Tax Structures, VAT, Transfer prices and BEPS all together with other relevant issues.

As part of this service, we provide advisory regarding the holding structure, submission of periodic tax reports and counseling on mergers, acquisitions and splitting of activities. For many years we have been involved in matters of multinational taxation, tax treaties between countries, information disclosure, prohibition on Money Laundering Law, and issues relating to transfer pricing in global corporations.

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