Wednesday, February 25, 2009
Tax Benefits for Olim, Returnees
Hillel Fendel Tax Benefits for Olim, Returnees
Adding a cherry to the ice-cream Sundae of living in the Holy Land, Israel offers new tax benefits to new immigrants (olim) and returning Israelis.
The innovative reforms include a ten-year exemption on taxes and reporting income and assets from abroad and assistance in establishing a business and finding work. The Ministry of Immigrant Absorption and the Jewish Agency have launched an extensive PR campaign to inform Jews all over the world, including Israelis living abroad, of the benefits to which they are all entitled. The new program boasts of its simplicity and includes an adjustment period of a year, tax exemptions and help in re-establishing businesses and finding employment.
Immigrants and returning residents will enjoy their first year nearly tax-free; they will not be classified as Israeli residents for tax purposes. During that year, they will be able to choose and decide whether to remain in Israel and enjoy the remainder of the benefits.
Finance Minister Roni Bar-On stated that the new laws will enrich Israel’s economy with human resources, widen its knowledge base and increase investment. Tax Authority Director Yehuda Nasradishi said the legislation reflects the Authority’s desire to formulate simpler, clearer and more effective legislation.
MK-elect Ze’ev Bielski, Chairman of the Jewish Agency, said, “With the global economic crisis rocking the world to its foundations, especially for those living in the West, each day and every hour is an excellent one to begin planning the future and thinking seriously about Aliyah.”
For more information on the tax benefits, eligibility, sample cases, and more, visit the Immigration Ministry’s website.