uabb domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/sites/lawfirmbackup_200125/wordpress/wp-includes/functions.php on line 6131What is international tax planning? International tax planning is a field whose importance increases every year. It covers various branches of international tax law, including conducting business according to international tax treaties, approving international transactions, proper reporting to tax authorities in Israel and abroad, and more. The boundary between legal and illegal tax planning is not always clear, and requires the aid of an attorney with experience and expertise in the field.<\/strong> In this article, attorney Michael Decker, a partner in our firm and a specialist in corporate law and international taxation<\/a>, explains several issues that business owners must be familiar with.<\/p>\n The importance of legitimate tax planning on the international level is continually increasing. Many Israeli companies have been expanding their operations abroad in recent years, such that they need to know how to handle themselves properly and avoid actions that contradict tax laws in each one of the countries where they are operating. Proper international tax planning enables companies to maximize their investments and profits, hence its great importance. Ideally, international tax planning should be done at the earliest stages of an overseas venture by an Israeli company. This includes ensuring that the financing of the overseas operation, the form of incorporation, the locations of the company\u2019s commercial activity, etc., are subject to legal tax planning. Below we will explain the main spheres in which proper tax planning plays a major role.<\/p>\n International tax planning is a slippery subject. The law in Israel and most developed countries allows individuals and companies to conduct tax planning that enables them to conduct business activities and reduce, as much as possible, the tax burden they carry. In an important ruling by the Supreme Court<\/a> (known as the Promedico case) it was ruled that tax planning in itself does not constitute a crime. However, it is very important to make sure that the tax planning does not slide towards the realm of tax evasion, which is illegal and likely to lead to fines and even criminal charges. This is even more necessary when the operations are overseas, in countries where the local tax laws are unfamiliar to those conducting the business activities. Accordingly, it is important to make sure that the tax planning is done according to the law.<\/p>\n Alongside businesses\u2019 reporting obligations to Israeli tax authorities, including income tax, VAT and the National Insurance Institute, companies operating overseas are generally required to report to the tax authorities in the foreign countries. It is important to do the reporting fully and continuously, in order to make full use of the rights and benefits from the tax authorities and avoid sanctions for incomplete reporting or lack of reporting.<\/p>\n
<\/p>\nInternational tax planning \u2013 what does it include?<\/strong><\/h4>\n
Legitimate tax planning<\/strong><\/h4>\n
Proper reporting to tax authorities in Israel and abroad<\/strong><\/h4>\n