Israel Tax Agency Issues Provisions Exempting Withdrawals from Provident Funds, Pension Funds

The Israeli Tax Authority Jan. 22 issued provisions allowing provident funds, insurance companies, and pension funds to exempt withholding taxes on onetime withdrawals, subject to specified requirements. The provisions provided that: 1) applications for exemption may be electronically filed; 2) the withholding tax exemption threshold for men is an annual income of up to 59,000 Israeli shekels (US$17,247) and for women up to an annual income of 72,000 shekels (US$21,042); and 3) a compensation limit of 10,000 shekels (US$2,922) applies to employed individuals, and 15,000 shekels (US$4,383) for unemployed individuals. The provisions took effect the same date. [Israel, Israel Tax ...