Banks to inform taxman on customers' foreign investments

Israel Tax Authority

Israelis investing abroad no longer need inform the Tax Authority about such investments in advance, instead the banks will provide data about overseas payments.

In September, the Israel Tax Authority announced with great fanfare that it was introducing a new "green channel" for streamlining transfer of funds by Israelis for investments abroad. Since September such transfers have only required a bank declaration and no need to report to the Israel Tax Authority and deducting tax in advance.

However, in tandem with the bureaucratic easement, the Tax Authority is not taking any chances. It has instructed Israel's banks to transfer to it all such data every six months in computer files. The order was signed by Tax Authority senior vice president Ronald Am Shalem and sent to the banks on September 25, one day before the announcement about the bureaucratic streamlining for investing abroad.

The new procedures will now bring Israelis investing overseas to the attention of the Tax Authority.

Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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