Who Benefits?

Based on the new tax reforms, the exemption on taxes and reporting will be provided for a period of ten years and applies to all types of assets and income generated outside of Israel. The benefits encompass:
 wages,
 business earnings,
 professional income,
 interest,
 dividends,
 rentals,
 royalties generated abroad,
 capital gains from the sale of assets located outside of Israel.

From now on, each and every immigrant and returning resident will be entitled to assistance in:
 creating or transferring a business from abroad,
 finding or retraining for a new job – an important service that can ensure a successful Aliyah.

To inform Jews and Israelis around the world about this new reform, and in order to enable them to exmine it, the Ministry of Immigrant Absorption and the Jewish Agency are launching an extensive PR campaign, to help each and every one of you make the correct decision.

The reform provides Jews around the world with a unique and worthwhile opportunity to make Aliyah, and enables hundreds of thousands of Israelis living abroad to return home. It reflects our desire to increase the number of people who choose to live here. Based on the reforms, new immigrants and returning residents will enjoy an adjustment period and tax exemptions – even on assets and new activities generated abroad.

Upon the enactment of the tax reform, Finance Minister Roni Bar-On stated that the new law would enrich Israel’s economy with human resources, widen its knowledge base and increase investment. According to Tax Authority Director General Yehuda Nasradishi, the legislation reflects the Authority’s desire to formulate simpler, clearer and more effective legislation.

Ze’ev Bielski, Chairman of the Jewish Agency, says that with the global economic crisis rocking the world to its foundations, especially for those living in the West, each day and every hour is an excellent one to begin planning the future and thinking seriously about Aliyah. It is especially now and under these specific global conditions, that living in Israel becomes of paramount importance to our future and that of our loved ones. Bielski is certain that the tax benefits program will help Jews the world over to make a decision to build their homes and their future in Israel.

Absorption Minister Eli Aflalo sees in the reforms a genuine revolution, one that for the first time combines Zionist and ethical principles with financial viability. The tax burden, he says, has always been a primary obstacle for immigrants and Israelis wishing to return to Israel. The lifting of this hurdle will produce significant growth in the number of Olim and will double the number of Israelis returning home. He is convinced that his ministry will continue to act towards lifting other economic barriers, developing even more attractive programs and encouraging Aliyah so that the Nation’s best can return home – to Israel.

Now, it’s easier, simpler and worth your while. The new tax reform is underway.