• Hashahar Tower, 4 Ariel Sharon, Givatayim

Appointing a fiscal Representative for Tax Purposes

Israeli tax authority laws state it is essential for a foreign company to have a local trustee who will perform as the company’s representative Israeli tax authority’s records. Our firm is appointed as a fiscal representative of many multinational corporations that carry out local projects or hold different kinds of local permanent establishment for tax purposes. Our firm holds extensive experience in this type of operations. We conduct special arrangements that allow the procedure to be carried out in the most convenient manner and meet all the tax authorities’ requirements for the corporation’s activities, which are derived from the VAT law and the tax regulations.

 

The service includes:

• Company registration and bookkeeping
• Tax Auditing
• On schedule Preparation and inspection of essential tax reports

 

The following is a concise description of the main requirements of the laws and regulations in Israel, which are relevant to this requirement.Section 60 of the Value Added Tax Law 5735-1975 (hereinafter: the “VAT Law”) concerns the appointment of a representative by nonresidents who conduct business in Israel through foreign corporations. In accordance with Section 60, a foreign dealer is required to notify the VAT Manager within 30 days from the date of commencement of his business activity in Israel, the name of his local representative, the representative may be an individual whose permanent place of residence is in Israel or a corporation registered in Israel (see Regulation 6 of the Value Added Tax Regulations) ] Of 1976).As stated, Section 60 regulates the matter of the registration of a foreign dealer operating in Israel and determines that a representative appointed as aforesaid is liable to the tax law as taxable. It should be noted that in Section 132 of the Income Tax Ordinance [New Version] (hereinafter: “the Ordinance”), Section 68B of the Ordinance was added, which states that a foreign resident who is required to appoint a representative pursuant to Section 60 of the VAT Law is required to appoint a representative for the purposes of the Ordinance. The Foreign Minister shall be empowered to submit reports to the tax authorities, to receive funds for the foreign resident and to handle any matter required by law in Israel.