Israel’s proposed Budget Law 2023–24 shows the new government is rolling up its sleeves to get to work on the tax front.
The tax proposals, inter alia: Encourage a more affordable housing market by limiting tax breaks on residential property; Combat improper conduct regarding VAT receipts; Force partial payment of tax debt, although an appeal is pending in court; Limit the amount of cash used for transactions; and Cancel the 0% VAT benefit for tourism-related services and hotels.
Other significant proposals seek to cut a tax slice from, and to regulate, digital business; create a VAT charge on certain digital services offered by foreign providers; and find ways to tax income from, and regulate, digital asset dealings.
- VAT registration obligation for foreign B2C digital service providers
- A framework to enforce tax on digital assets
- Heading in a good direction
Source: ITR
