Fiscal representation

In order to implement the requirements of Israeli tax laws as derived from the VAT Law and the Income Tax Order, Israeli representation must be recorded in the Tax Authority’s registry.

We can be appointed as the representative of a foreign dealer and a foreign tax payer when conducting business activities in Israel (as a branch of a foreign corporation, or as the owner of a company formed in Israel by the foreign entity). Our firm serves as the representative of many multinational companies vis-à-vis the Israeli tax authorities. We manage special settlements that enable the process to be conducted with maximum convenience and conform to all the requirements of the tax authorities with regard to the corporation’s activity, as derived from the VAT Law and the Tax Order.

The service includes:

• Registering the company and keeping its books
• Professionally handling tax inspections
• Preparing and reviewing requested statements as required and in a timely manner

The following is a short summary of the main legal and regulatory requirements in Israel that are relevant to this requirement.

Section 60 of the Value Added Tax Law 1975 (hereinafter “the VAT Law”) covers the appointment of a representative by foreign residents conducting business in Israel through foreign corporations. According to Section 60, a foreign dealer is obligated to notify the VAT Director of the name of their local representative within 30 days of commencing their business activity in Israel. The representative can be an individual who permanently resides in Israel or a corporation registered in Israel (see Regulation 6 of the Value Added Tax Regulations [Registration] 1976).

As stated, Section 60 settles the matter of registering a foreign dealer who operates in Israel and states that an appointed representative is treated the same as the tax payer with regard to the VAT Law. From this, one can understand the extent of responsibility resting on the representative’s shoulders.

It should be noted that under Amendment 132 to the Income Tax Order [New Version] (hereinafter “the Order”), Section 68b was added to the Order, stating that a foreign resident who is required to appoint a representative as per Section 60 of the VAT Law must also appoint a representative for the purpose of the Order. The foreign resident’s representative will have power of attorney to file statements to the tax authorities, receive funds for the foreign resident, and handle any matter required by law in Israel.