Israel Tax Agency Posts Circular Clarifying Temporary Tax Benefits Regarding Undistributed Profits

The Israeli Tax Authority April 6 posted online Circular No. 03/2025, clarifying the temporary tax benefits established under the Economic Efficiency Law concerning the taxation of undistributed profits. Topics covered include: 1) the liquidation of companies or the transfer of assets to individual shareholders with tax deferrals and exemptions from the purchase tax; 2) entities eligible for the benefits, including general conditions and requirements; 3) tax implications for dissolving companies and their shareholders, including the calculation of distributable profits and the applicable tax rates; 4) aspects of VAT liability and real estate taxation, including the application of the zero percent ...