Tax Considerations

 

A+CROWD does not provide tax advice and strongly advises you to consult with your personal tax adviser.

Depending on your individual tax position, you may be liable to pay taxes on any dividends or gains you receive from your investments, which are your responsibility to pay. A+CROWD may deduct or withhold taxes at source according to applicable law unless you provide us with a valid tax exempt certificate.

Considerations relating investors that are not residents of Israel:

Capital gains tax

There are two main routes for a capital gains tax exemption for foreign residents that sell their shares in an Israeli private company:

Israel domestic law which generally exempts foreign residents from tax on capital gains met, mainly:

The capital gain is not in the foreign resident’s permanent enterprise in Israel;

The security was not acquired from a relative and the provisions of Part Five “B”, or the provisions of section 70 of the Real Estate Taxation Law did not apply to it

At the time of the sale the security is not traded on a stock exchange in Israel

Relevant tax treaties with the country in which the investor resides. According to most tax treaties, the foreign investor will be exempt from capital gains tax in Israel

 

Dividend withholding tax

Dividends distributed from an Israeli company to a foreign shareholder are subject to tax in Israel and to dividend withholding tax, currently of 25%-30% rate. Note that certain tax treaties reduce the tax rate and some even exempt the withholding tax at source under certain conditions.