Best Tax Lawyers in Herzliya

About Tax Law in Herzliya, Israel

Tax law in Herzliya, Israel, is guided by national legislation administered through various governmental agencies such as the Israel Tax Authority. As a major city in the Tel Aviv district, Herzliya is home to numerous businesses, professionals, and residents who must comply with complex Israeli tax regulations. These laws cover a wide range of taxes, including income tax, value-added tax (VAT), capital gains tax, real estate and land appreciation taxes, as well as municipal taxes. Local councils, including Herzliya's, also levy additional taxes like municipal property tax (arnona), which fund essential city services.

Why You May Need a Lawyer

Individuals and businesses in Herzliya may require legal assistance for various tax issues. Some common situations include:

• Responding to audits and investigations by the Israel Tax Authority.
• Disputes regarding tax assessments or penalties.
• Understanding obligations for foreign citizens, new immigrants (olim), and returning residents.
• Tax planning for significant business transactions or real estate deals.
• Navigating the complexities of double taxation treaties if you have income or assets abroad.
• Addressing back taxes and negotiating payment arrangements for tax debts.
• Establishing and maintaining compliance for startups and technology firms, which are prominent in Herzliya.
• Assistance with municipal taxes such as arnona, especially for new property owners or renters.

Local Laws Overview

Several key legal frameworks affect tax liability in Herzliya:

• Income Tax Ordinance - This national law outlines the rules for individual and corporate income taxes, including rates, deductions, and reporting periods.
• Value Added Tax Law - VAT applies to most goods and services, collected by businesses and remitted to the state. The current standard VAT rate is 17 percent.
• Real Estate Tax - Transactions involving real estate in Herzliya are subject to purchase tax (mas rechisha), appreciation tax (mas shevach), and sometimes betterment tax, with specific exemptions for first-time buyers and certain types of transactions.
• Municipal Tax (Arnona) - Residents and businesses pay arnona to the Herzliya municipality based on property size, type, and use. Rates and discounts may vary.
• International Taxation - Israel has signed various double taxation agreements, providing relief to residents with foreign income.
• Self-Reporting and Audits - Individuals and companies must file periodic tax returns. The Israel Tax Authority selects returns for audit based on risk analysis or random selection.

Frequently Asked Questions

What types of taxes are residents and businesses in Herzliya required to pay?

Residents and businesses are subject to national income tax, VAT, capital gains and real estate taxes, and municipal taxes such as arnona.

How is municipal property tax (arnona) calculated in Herzliya?

Arnona is based on the size of the property, its use (residential or commercial), location, and sometimes additional factors. The Herzliya municipality sets and publishes the rates annually.

Are there tax benefits for new immigrants (olim) or returning residents?

Yes. New immigrants and returning residents often qualify for certain tax exemptions and benefits, including on foreign income for a limited period.

What are the current VAT rates, and who needs to register for VAT?

The standard VAT rate is 17 percent. Businesses with revenue above a certain threshold must register as VAT dealers and collect VAT on their sales.

What is the deadline for annual tax return filing in Israel?

For individuals, the annual tax return is generally due by the end of April. Companies may have extended deadlines, typically to the end of May or June, depending on their circumstances.

Can I dispute a tax assessment or penalty issued by the Israel Tax Authority?

Yes. Taxpayers may file formal objections or appeals within the timelines set by law. Legal representation can improve your chances of success.

How are foreign incomes taxed for Herzliya residents?

Residents are taxed on their worldwide income. However, double taxation treaties may provide relief, and new immigrants may be eligible for certain exemptions.

What should I do if I make a mistake on my tax return?

You should file an amended return as soon as possible. Consulting a tax lawyer can help correct errors and minimize penalties.

How does the Israel Tax Authority select taxpayers for audit?

Selections are based on risk assessment, random sampling, or as a result of irregularities detected in filings.

Do Herzliya businesses need special tax considerations?

Yes, especially startups and technology firms, which may qualify for incentive programs, grants, or special tax rates depending on their sector and activities.

Additional Resources

Consider reaching out to the following organizations for further assistance and information:

• Israel Tax Authority - For official forms, tax news, and inquiries.
• Herzliya Municipality Tax Department - For questions related to arnona and other municipal taxes.
• Institute of Certified Public Accountants in Israel - To find licensed accountants knowledgeable about local tax law.
• Ministry of Aliyah and Integration - For guidance on immigrant tax benefits.
• Israel Bar Association - For referral to qualified tax lawyers in Herzliya.

Next Steps

If you need legal assistance regarding tax matters in Herzliya, consider taking the following steps:

• Gather all relevant documents, such as tax returns, assessment notices, billing statements, and correspondence from tax authorities.
• Clearly outline your questions or concerns to better communicate your needs to a lawyer or advisor.
• Contact a qualified tax lawyer or certified accountant with experience in Herzliya and Israeli tax law.
• Schedule a consultation to discuss your specific situation and possible solutions.
• Consider ongoing legal support for complex cases, tax planning, or continued compliance needs.