Israel Tax Agency Clarifies Tax Benefit Program for Repatriating High-Tech Workforce

The Israeli Tax Authority Nov. 30 clarified the tax benefit program for repatriating a high-tech workforce. The benefits are a two year temporary measure. The benefits include: 1) the option for repatriating employees to pay taxes on stock options and assets after one year instead of ten years of returning from overseas; 2) a relaxed tax residency determination rule; 3) a tax deduction for expenditures on repatriation; and 4) the application of a maximum 30 percent income tax rate instead of the 47 percent tax rate in the first year of repatriation and a 35 percent rate in the second ...