Israeli tax expert sheds light on issues

MICHAEL BELLING

 Pictured: Israeli tax expert Dr Avi Nov, who is visiting South Africa.

Nov is currently visiting South Africa for the first time. He spoke at Beyachad on Tuesday, focusing on various Israeli and international tax issues that could be faced by people in South Africa contemplating aliyah or who might wish to do business in Israel.

Good information on tax exemptions in Israel and how they apply to businesses and individuals is not always available, he told the Jewish Report.

“Government literature does not always make it clear,” he said.

“You can’t always get the answers from the government, therefore a lot of people approach a lawyer to show them what to do and what they are entitled to. The exemption issue and how it applies to individuals and businesses is also not clear,” he added.

Israel’s tax system actually has various benefits for foreign investors, and for new immigrants and returning residents with an excellent framework for international tax planning.

Nov highlighted four areas of tax benefits and planning opportunities:

·         Foreign investors – such as capital gains tax exemptions and on certain bonds;

·         New immigrants and returning residents – such as exemptions on all types of income and using holding companies;

·         General tax benefits – such as a comparatively low company tax rate and various exemptions; and

·         Rental income – three possible valuation options.

The major focus areas of Nov’s practice are operating companies and businesses and individuals.

Nov, who has advised Israel’s finance minister on aspects of the country’s tax laws, international taxation and tax policy, deals with  a wide variety of corporate tax issues, including establishing low tax holding structures, tax on approved enterprises and overseas investment.

His work for individuals extends to international taxation, taxation of trusts and tax benefits for new immigrants and returning residents.

He has lectured on Israeli tax law at several universities and published a book (in Hebrew).