View from Barnea & Co Law Offices

Israel: Amendments to pension insurance allocation rules

After about a year of uncertainty about the pension insurance allocation ratios, the matter has now been resolved. A collective agreement has been signed between the Presidium of Israeli Business Organisations and the Histadrut Federation of Labour, which regulates the increase in the ratios of both the employee’s contribution and the employer’s contribution to the pension component in […]

Israel: Amendment of the Income Tax Ordinance

An amendment to the Income Tax Ordinance that was recently enacted obligates financial institutions to identify the residency and citizenship of their foreign account holders. The financial institutions are required to report the information to the Israel Tax Authority, so that the ITA can then relay that information to the relevant foreign tax authority. Consequently, provisions of the […]

Reverse vesting and holdback – good news for entrepreneurs?

In the world of high tech and Israeli tax there has been some uncertainty as to whether entrepreneurs, whose shares are subject to a reverse vesting mechanism or a holdback upon their sale, should be paying income or capital gains tax. Earlier this month the Israel Tax Authority published a draft circular presenting its position […]

Israel: reverse vesting and holdback – good news for entrepreneurs?

Originally printed in The Times of Israel BY ARIELLA DREYFUSS “In this world nothing can be said to be certain, except death and taxes.” Benjamin Franklin strikes again. However, in the world of high tech and Israeli tax there has been some uncertainty as to whether entrepreneurs, whose shares are subject to a reverse vesting mechanism […]

Israel: foreign construction companies get green light

In March 2016 the government adopted the housing cabinet’s recommendations regarding criteria for allowing foreign construction companies to begin operating in Israel. This move is one of the government’s strategies for increasing the volume of residential construction in Israel. The government decided, inter alia, to publish a federal RFP (request for proposal), containing the threshold requirements […]

Business Leadership

To be or not to be a director?

Investors, whether angels, VCs or corporates, typically demand a seat on the board of directors of their target company in return for their investment. However, it is important to remember that directors in Israeli companies have obligations as well as rights. They have a duty of care, a fiduciary duty and a duty of disclosure […]

The Knesset: political hub and familiar stomping ground of Israeli lawyers

Israel: property contractors may be breaching privacy laws

Purchasers of Apartments in Afula were surprised to receive a call from a mortgage advisory company, despite not having given the contractor prior consent to transfer their data to such company. The Ministry of Construction and Housing commented on this issue that…


Germany-Israel tax treaty

…The new treaty, which is based mainly on the model tax treaty of the OECD, introduces a number of favourable amendments (for the taxpayer) and improvements…

Adv Yuval Lazi to represent Barnea as a judge on ‘demo day’

Adv Yuval Lazi will participate tomorrow as a judge at the final event of the Startau elite entrepreneurship program “demo day”. This program is a unique acceleration program intended for young entrepreneurs, whose involvement in the program commences at concept stage. The program gives these young entrepreneurs the tools and knowledge to advance the concept […]

E-commerce tax revolution: new guidelines in Israel

The Israeli tax authority published new guidelines for the taxation of foreign corporate entities operating in Israel via the internet. The guidelines are focused on corporate tax, although they briefly deal with the issue of VAT registration as well; consequently, they review matters such as permanent establishment, dependent agent, the place in which the business activity is conducted […]

China’s Fosun buys Ahava Dead Sea cosmetics

Fosun (China) has bought controlling shares in Ahava Dead Sea Laboratories for NIS 290m (£53.9m). Barney & Co’s Micky Barnea, Ariella Dreyfuss and Itay Gura represented Kibbutz Mitzpe Shalem, one of the selling shareholders.

Israel: VAT on inbound e-commerce and digital services

On March 13, 2016 the Israeli Ministry of Finance opened a consultation process in respect of draft legislation aimed at amending the Israeli VAT legislation, introducing VAT liability on out of state e-commerce and digital services providers that provide electronic and digital products and services into Israel, even if such providers do not have any place of business in Israel. […]