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New Court Decision in Israel Will Impose a Significant Tax Burden on International Companies with Israeli Permanent Establishments

Posted by Boaz Feinberg on Jan 27, 2016 9:51:46 AM

Recently, the District Court in Tel Aviv was required to address the question as to whether foreign companies with an Israeli Permanent Establishment (PE) should include on their revenue calculation unrecognized expenses for tax purposes. Such expenses would include payroll expenses for granted employee’s options and the social expenses derived from it, in companies whose revenues are calculated at the 'Cost Plus' pricing method, even though the options were granted to employees under Section 102 of the Israeli Income Tax Ordinance

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Topics: Tax Law, Foreign Parent Company, Israeli Tax

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Sullivan's Tax & Sports Update provides timely updates and cutting-edge commentary on all issues affecting U.S. taxation, and, of course, an always humorous take on sports! Edited by Joseph B. Darby III, a partner in Sullivan's Tax Department.

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