Israel Tax Agency Posts Circular Clarifying Capital Loss Offsets for Taxpayers

The Israeli Tax Authority Nov. 27 posted Income Tax Circular No. 10/2025, on offsetting capital losses for taxpayers. Topics covered include: 1) recognizing capital losses at the date of sale, and the ability to carry forward unused capital losses to the following tax year; 2) offsetting losses against share income, subject to the value of the benefit and trustee holding requirements; 3) proportional recognition of losses when only part of a gain is taxable, based on the taxable to total gain ratio; 4) disallowance of offsets for unacceptable ledgers or exempt transactions; 5) rules for losses from foreign assets and ...