Lawyer in Israël

Kaufman 6
Tel Aviv, ISRAEL

Tax law


Tax law is the set of laws relating to various types of taxes.

The purpose of taxation is to contain the behaviour of individuals in our society, to prevent the imposition of risks on others, and to transfer a proportion of the public resources to the State. As we know, no country can exist without resources and taxes are a part of these resources. It is also important that the public helps the state to achieve its objectives.

Another stated aim of taxation is the redistribution of wealth, in order to reduce the economic disparity between different sectors of society. In practice this is rarely successful.

Why pay taxes?

Taxes are one of the foundations of the country, they are the ones that help the state to maintain the security of citizens, that operate the system of education and all other systems, that fills the basket of health, pays pensions, builds and repairs roads and all the other things that the state does for its citizens.

The role of tax treaty is to avoid a situation where people have to pay taxes on their income in more than one country, or a situation where companies or individuals can take advantage of tax havens and therefore pay no taxes.

The rates tax is a property tax that all citizens have to pay for their housing and business for the rental of their offices. This tax funds many actions of local authorities. The height of taxes is based on the location of the property, its size, the type of use, the economic situation of those who buy or rent the housing is also taken in consideration.

Voluntary disclosure is when a person of their own initiative report to tax authorities an income not reported in the past without having received a request from the income tax authorities for them.

The capital incentive act is the name of the law that encourages people to invest in the industry in the country. One of its objectives is to encourage companies from the periphery, another is to promote the country in comparison to other countries.

People and businesses operate worldwide and it is sometimes very difficult to determine what government they have to pay their taxes. The problems are twofold: first it causes serious complications in the accounts of the companies themselves, and secondly the fact that the laws are different in each country makes it even more difficult. That is why there are clear rules for international taxation.

The corporate tax is a tax that every business must pay over their profits.

In any case of purchases or sales in the real estate sector there is a tax to pay. There are exemptions for certain cases depending on circumstances.

The tax on capital gains is a tax that a person pays on the profits of his capital, for example the capital gain for the sale of a property will be the difference between the price paid when he bought it and the price he received when he sold it.

Customs tax is the tax that any person or company pays for any import or export of any goods.

The income tax is a direct tax that every person, firm, corporation or other business pays on its turnover. By law there are certain expenses that can be deducted from that income.

Sales tax is a tax that people usually do not feel much because it is calculated as a percentage of the wholesale price of all products.

The purchase tax is the tax a person pays when he buys the right to land, an apartment building, a house, a land or an apartment.

The value-added tax or VAT is the consumption tax is a tax that is levied by the companies. The difference between the net price of goods before the tax and its price including the tax is the VAT, it is automatically added to the overall purchase prices for all things.

There are countries where taxes are levied or there are no taxes at all, all kinds of people and businesses try to register their business in these countries to avoid paying taxes.