- Israeli trust reporting requirements: The Israeli Tax Authority has announced that the deadline for trust reporting for Israeli tax purposes, where relevant, is now June 30, 2009. These reporting requirements should not matter in the case of Trust Owned Vehicles (TOV’s – see details on this web site) which derive all their income and gains from assets outside Israel.
- Trust transitional rules: Irrevocable trusts existing before 2006 may opt to pay Israeli tax by June 30, 2009 at rates ranging from 4% to 10% on the value of their overseas capital (= assets) as at the end of 2005 plus distributions made in 2003-2005. This will not be relevant for Trust Owned Vehicles (TOV’s) formed in 2006 or later.
- Israeli company tax rates: A Trust Owned Vehicle (TOV) is generally exempt - see details on this website. The regular rate for other companies is scheduled to decrease from 26% in 2009 to 25% from 2010 onwards.