Important Update Regarding Olim Chadashim and Senior Returning Residents
The Israeli Tax Authorities are planning to revise the guidelines concerning the tax holiday for senior returning residents and Olim Chadashim, by canceling the reporting exemption they have enjoyed for ten years, that started the year they immigrated to Israel, as to their overseas assets and income for that period. As to this date, Section 14 to the Israeli Tax Ordinance stipulates that an "Ole Chadash" or a senior returning resident (a person that has not been an Israeli Resident for at least 10 consecutive years), will enjoy a special tax holiday, which also includes an exemption from reporting foreign assets or income for a period of 10 years.
The ITA commissioner, Mr. Moshe Aasher, has announced the intention of the ITA to cancel the reporting exemption. Mr. Asher stated that the ITA will try to amend the law by the end of the year, so that the new reporting obligation on Olim Chadashim and senior returning residents will apply to individuals that will immigrate to Israel during 2016 and later. In these circumstances, it is our recommendation for individuals who are thinking of immigrating into Israel in the near future, to consider doing so by the end of the 2015 tax year, i.e – December 31st, 2015.
For more information please contact Adv. Boaz Feinberg, Partner and head of the Tax and AML Department.