Contributed by: Artzi, Hiba, Elmekiesse, Cohen - Tax Solutions Ltd., Israel
On the 9th and 10th September 2019 Artzi, Hiba, Elmekiesse, Cohen – Tax Solutions Ltd. held two conferences in Tel Aviv and Haifa, which we host every two years, designated mainly for our colleagues (attorneys and CPAs) who cooperate and receive services from us during the year, as well as for our clients - we hosted about 450 attendees at both conferences. The topics of the lectures were varied, including International Taxation, Israeli Taxation and a special guest lecturer.
Our office also published recently a tax guidance book , based on tax alerts that our office sends every week to 3,500 recipients. At the conference the book was presented to the attendees.
Our professional team lectured about the following topics at the conference:
• M&A: Tax Considerations in Merger and Acquisition Transactions- it was emphasized that often during business deals the dealing parties do not bear in mind the tax consequences of the different ways of closing the deal (e.g. closing an asset deal versus a share deal). The lecturer gave examples of situations where clients had to modify initially agreed terms due to tax implications that were not taken into consideration at the early stages of the business deal.
• VAT on real estate transactions and law of encouragement in the construction of rental apartments- the lecturer presented different situations regarding the sale of real estate, the VAT rules are tricky and the VAT doesn't always apply. There is an encouragement law regarding the rental of real estate which implicates lower tax rates if conditions are met.
• The Crypto Industry- Various tax issues regarding the trade of cryptocurrencies were presented, mainly the court ruling that defined the cryptocurrencies as "capital asset" and not as foreign exchange, providing that the sale of digital currency is liable to CGT.
• Use of transparent entities in the US and European investments- Implications of investing in the US through an LLC, there is a contrast between the status of an LLC in the US versus Israel (not transparent in Israel), special circular allowing only tax credits from an LLC. Also, various possibilities to invest in Europe through transparent entities with emphasis on the new European Union directives.
• Guest Lecturer - Dr. Alex Coman, Senior Lecturer on Economy, Management, Innovation and Technology.
• Capital Investment Encouragement Law - Cannabis, a "preferred technological enterprise" with a special tax benefits regime among other investments (technology, Real Estate, etc.) with preferred tax regimes .
• Social Security - Income abroad and wallet companies, differentiation between self-employed and employees.
• Panel - at the end of the conference we held a panel with our professional team who answered to questions asked by the public.