Alex Sutovsky

The positive economic atmosphere in the market is also felt in the large number of new businesses opening in Israel. Each day, many new businesses are opened, most of them small and medium sized. More than once this relates to young people who have finished their world tour and now are full of energy and attack the market with a view to conquering it.

Israel decided to encourage foreign investors and from the beginning of the year a number of changes were made in the Income Tax Ordinance for the benefit of foreign residents. Amongst the main benefits one can find: a tax exemption on dividends that a company receives from foreign companies in which it invested and an exemption from capital gains tax from the sale of shares in those companies. In this way, the company may move revenues from abroad to Israel without any tax liability.

Economy, taxation and financial processes control in Eastern Europe and the Commonwealth of Independent States