Tax Law
Studies show that tax issues are among the most common reasons for losses and sometimes failures of transactions of all kind, from inheritance to real estate transactions to investments and international transactions. Therefore, an important accent of our office lies on taxation, whether domestic or international.
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1. International Taxation (Israel, Germany, Switzerland, Austria)
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Studies show that tax issues are among the most common reasons for losses and sometimes failures of international transactions, enterprises or ventures, mainly due to poor tax planning. This is no coincidence, as tax consulting in international transactions and ventures is one of the most challenging areas of law, which requires extensive knowledge and experience in international tax law and as well as the national tax laws of the jurisdictions involved.
Therefore, international tax advice in the early stages of any cross-border undertaking is essential to the avoidance of significant financial losses later on. By partnering with experienced tax advisors and certified public accountants who possess in-depth knowledge of the relevant tax laws, businesses and individuals can effectively manage their tax exposures and achieve optimal tax efficiency.
We understand the tax laws of Israel, Germany, Switzerland and Austria and will be able to provide our clients with specialized, in-depth knowledge in these fields, including issues of VAT, corporate tax, transfer pricing and employees’ income tax.
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2. Corporate Tax and VAT
Whereas corporate tax is harmonized by bi-lateral tax treaties avoiding double taxation between states, VAT issues are usually regulated separately by each tax jurisdiction and is the subject of only very few international conventions. Therefore, the knowledge and experience in each applicable tax jurisdiction, whether in Israel or in Germany, Switzerland or Austria, is vital to the success of a venture between these states.
Most of our foreign clients requesting advise in corporate tax and VAT issues are domiciled abroad and perform a project in Israel, or wish to expand their business into the Israeli market. Therefore, our team accumulated great knowledge in these fields and bill stand by you not only at the beginning of the project, but will stay with you through entire performance and, if necessary, will intervene on your behalf with the relevant tax authorities.
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3. Inheritance and Gift Tax
Whereas Israel has no gift or inheritance tax, in particular Germany and many other European states burden important taxes on the heirs or the receiving party of a gift. These taxes may be substantially reduced by reasonable tax planning in time, i.e., before the death of a person or before offering a certain gift.
The members of our taxation team regularly advise Israeli and foreign clients on issues of foreign gift and inheritance tax and, therewith help to avoid classical tax traps which may lead to substantial reductions of family wealth.
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4. Real Estate related Tax
In Israel as well as in Germany, real estate taxation forms an important part of every real estate transaction and, in many cases, may overturn the balance of profitability. In particular where Israeli real estate tax is combined with inheritance or capital gains taxes abroad, transactions can turn into a tax trap for the client. Therefore, professional and educated advise before the transaction is crucial for economic success.
Our firm avails of decade long experience when it comes to accurately assessing taxes involved in a real estate transaction, even if several tax jurisdictions are involved. The members of our team regularly provide legal tax opinions to foreign clients or act as experts on Israeli law vis a vis foreign, mostly German courts on these issues.