Practice Area

Dr. Judith Taic Law Office is a boutique law office specializing in the field of German, Israeli and U.S. tax law.

The firm provides detailed, comprehensive counsel and written opinions on German and Israeli tax law, especially in the field of succession planning, trusts and foundations. Dr. Judith Taic’s firm provides advice concerning real estate transactions of domestic and foreign investors in Germany and Israel, tax related issues connected with the relocation of Israelis to Germany or other European countries and to the USA, as well as tax-optimized planning before making Aliya. The firm further provides counsel for reporting requirements under FATCA. The firm also carries out voluntary disclosure procedures in Israel and Germany for Israeli and German clients.

As licensed attorney in Germany, Israel and the USA, Dr. Judith Taic represents Israeli and foreign clients in tax related issues, including tax objection procedures and internal hearings before the Israeli and German tax authorities.

Dr. Judith Taic

Dr. Judith Taic, LLM Taxation (NYU), TEP, heads her own boutique law office with its main focus on national and international tax matters in Germany, Israel and the USA. She earned a doctorate in the field of international taxation from the Ludwig Maximilian University of Munich, Faculty of Public Law, Commercial and Tax Law. She published a book about transfer pricing of intangible assets. After working in Frankfurt am Main at an international tax law firm, she earned an LLM degree in taxation from the New York University. She is a qualified and licensed attorney in Germany, New York and Israel and is a member of the Bar Association in Frankfurt am Main, New York and Israel.

Publications

 New Guidelines for the Voluntary Disclosure Procedure

Following the release of the New Voluntary Disclosure Procedure (VOD) in December 2017 the Israeli Tax Authority published on February 13, 2018 Guidelines as to the implementation of the VOD and thereby give instructions and clarifications as to the manner the VOD is to be processed. The Guidelines contain a very important statement: “Not in all cases taxation on the capital itself”.

To read more about the New Voluntary Disclosure Procedure and the Guidelines >

Israel: Tax Authority Published New Voluntary Disclosure Procedure – Probably Last Chance

On December 12, 2017, the Israeli Tax Authority published a New Voluntary Disclosure Procedure, which will be in force for 2 years (2018-2019). The procedure provides for three different routes: Regular Route, Anonymous Route (in effect for only one year) and Shortened Route.

It seems that this newly published Voluntary Disclosure Procedure gives the taxpayer a last chance to come forward and declare his/her income and assets, before the expected automatic exchange of information (“CRS”) will be implemented.

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Israel: Facilitating the transfer of funds abroad for investment purposes

In September 2017 the Israeli Tax Authority published a press release according to which the process of transferring funds from Israel to foreign recipients for investment purposes will be easier and quicker. The sole signed declaration by the transferor of the funds might be sufficient. How and under what conditions?

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Overview: Tax Aspects of Investment in German Real Estate

Germany is certainly no tax haven. In addition to income tax, corporate tax, German trade tax and real estate purchase tax, Germany has a gift and inheritance tax system in place which is also relevant for foreign investors.

For an Israeli investor there are different structures possible as to how invest in German Real Estate. In order to optimize the tax structure, the investor has at the outset to be aware and clear of the different phases of a Real Estate Investment and the overall goal of his investment. Please find a short overview of the basic possible structures for investments into German Real Estate

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New Transparency Register for Beneficial Owners of Private Entities

On June 26, 2017 a new Anti-Money Laundering Act (Geldwäschegesetz – hereinafter: “GWG”) entered into force in Germany, implementing the 4 th EU Anti-Money Laundering Directive No. 849/2015 of May 20, 2015 (the “Directive”). In general the new GWG reinforces the risk based approach.  Of central importance of the new GWG is the establishment of the so called “Transparency Register” regarding ultimate beneficial owners of all non-listed legal entities.

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Tax Residence of an Individual – New Israeli Supreme Court Decision

A new Supreme Court decision (Unknown v. Ashkelon Income Tax Assessor Officer – 22.07.2017) deals with the question of the residence of an individual and the issues relating to the determination of the “centre of life” of an individual. This Supreme Court ruling may have a significant implication on the determination of an individual’s tax residence under Israeli tax law.

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Germany: New Tax Loss Carryforward Regime

In December 2016 the German Bundestag and the German Bundesrat have approved the new Sec. 8 d CITA (German Corporate Income Tax Act) according to which the present restrictions for the use of tax loss carryforwards have been substantially improved. The primary goal for the new Sec. 8d CITA is certainly to protect young innovative enterprises from the negative consequences of the often necessary change of shareholders.

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Deutschland: Neue Zinsschranke und vorgeschlagene Lizenzschranke

Im Dezember 2016 wurde der neue § 4i in das deutsche Einkommenssteuergesetz (EStG) eingeführt mit dem Ziel einen doppelten Betriebsausgabenabzug im Zusammenhang mit einer Beteiligung an einer Personengesellschaft in Deutschland und einem anderen Staat zu verhindern. Zusätzlich wurde im Januar 2017 ein Gesetzesentwurf eingereicht, der in Form eines neuen § 4 j EStG die Abzugsfähigkeit von Aufwendungen für die Gewährung von Lizenzen an nahestehende Personen erheblich einschränken soll.

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Multi Residential Apartment Tax effective as of January 1, 2017

Individuals (including foreign residents) who own three or more residential apartments in Israel will pay a new annual tax on the third apartment and above. The annual tax will be 1 % of the value of the apartment but limited to NIS 18,000 a year. This new tax on multi residential homes is supposed to be another measure to rein the soaring prices of homes and to encourage the sale of residential homes and thereby making more homes available for people buying them to live in.

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Effective as of January 1, 2017: Significant Changes in Israeli Tax Law

With effect as of January 1, 2017 there are some significant changes in the field of Israeli taxation, which will have an influence for individuals, trusts and corporations. The Israeli corporate tax rate is reduced to 24 % as of January 1, 2017, whereas the surtax levied on high income individuals is increased to 3 % from 2 %. In addition there are some significant provisions enacted with respect to the taxation of cash withdrawals or the use of corporate assets by substantive shareholders. Furthermore, the new law contains a provision for the taxation pertaining to so called “wallet companies”, companies owned by individuals who provide services, and finally a beneficial temporary order with a reduced tax rate for dividend distributions, which will be made until September 30, 2017.

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Tax Aspects of Investments in Germany by Israeli Investors

The real estate market in Germany offers interesting opportunities to Israeli investors especially in combination with the interest rate at an historical low. Cross border taxation play a substantial and crucial factor in optimizing investment structures in German real estate. The following presentation provides for an overview over the German tax system and shows some possible investment structures in German real estate from the perspective of an Israeli investor.

Presented by Dr Judith Taic in Zurich at “Private Wealth Forum Israel”, 30.November 2016

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German Inheritance and Gift Tax Reform 2016 for Businesses

On 14. October 2016 the Federal Parliament (Bundestag) and the Federal Assembly (Bundesrat) have reached a compromise on the inheritance and gift tax reform for the inheritance of business enterprises. All business assets, including interest in a commercial GmbH & Co KG as well as qualified shares in corporate enterprises shall continue to be eligible for preferential inheritance/gift tax treatment.  The following article summarises the Basic Relief of 85 % and the Optional Relief of 100 %, as well as the treatment of administrative assets, the specific relief for family enterprises and the acquisitions of businesses over EUR 26 million under the new German inheritance tax rules.

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Proposed classifications of foreign companies as Israeli tax residents and proposed presumption of “Passive Income” with respect to Controlled Foreign Corporations (CFC)

In the field of international taxation the proposed tax legislation includes two important far reaching provisions. One provision is connected to a new classification when a foreign company is considered having its tax residence in Israel. The other provision deals with a new classification of “Passive Income” with respect to the taxation of a controlling shareholder of a Controlled Foreign Corporation (CFC).  The good news is that a third proposed provision which called for the cancellation of the 10-year reporting exemption for foreign source income and assets for Olim or long-term returning residents has been removed from the legislative proposal for the year 2016/2017. Accordingly, New Immigrants will continue to enjoy the reporting exemption at least for the near future.

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Israeli Taxation of Foreign Digital Companies

In April 2016 the Israeli Tax Authority (ITA) has published a Circular addressing the Israeli taxation of non-resident companies selling goods or providing services through the Internet to Israeli customers. The Circular covers the corporate income tax liability as well as the VAT-liability of these digital companies. It should be emphasized that the Circular represents the ITA’s interpretation of the law and has not a legal binding effect for the courts.

Read more>  The full article by Dr. Judith Taic has been published in Internationales Steuerrecht IStR 15/16  (IfA)

Recent Changes in the Israeli Tax Law – Double Taxation Agreement effective in 2017

There are again some changes and new developments in the Israeli tax law in the fight against tax evasion. Thus, the Israeli Money Laundering Law has been changed in April 2016 and certain tax offences are treated as predicate offences under the Money Laundering Law. As a direct response to this amendment, the Israeli Tax Authority (ITA) has extended the Temporary Voluntary Disclosure of 2014 again until 31 December 2016. In the area of the global exchange of information, Israel has signed in May 2016 the Multilateral Competent Authority Agreement (MCAA). Finally, the new double tax treaty for the avoidance of double taxation between Germany and Israel, signed in August 2014, will be effective as of January 1, 2017.

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Aktuelle Steuerthemen aus Israel

Im Kampf gegen Steuerhinterziehung gibt es wieder einige Änderungen und Neuentwicklungen im israelischen Steuerrecht. So wurde das israelische Geldwäschegesetz erneut im April geändert und bestimmte Steuerstraftaten als Vortaten im Sinne des Geldwäschegesetzes aufgenommen. Als unmittelbare Folge dieser Gesetzesänderung hat die israelische Steuerbehörde das vorläufige Selbstanzeigeverfahren von September 2014 nochmals bis zum 31.12.2016 verlängert. Im Bereich des globalen Informationsaustauschs hat Israel im Mai 2016 die Mehrseitige Vereinbarung zum automatischen Informationsaustausch (MCAA) unterzeichnet.  Das im August 2014 unterzeichnete Doppelbesteuerungsabkommen zwischen Israel und Deutschland tritt ab 1. Januar 2017 in Kraft.

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Aktuelle Steuerthemen aus Israel

 Seit Anfang 2016 wurden einige Änderungen im israelischen Steuerrecht vorgenommen, die unter anderem auch für Steuerausländer von Bedeutung sind. Im folgenden Beitrag wird auf das Rundschreiben der israelischen Steuerbehörde zur Besteuerung ausländischer Unternehmen im digitalen Wirtschaftsverkehr, auf die neue Offenlegungspflicht von Steuergutachten, auf die Pflicht zur Abgabe einer Steuererklärung für Steuerausländer und auf die Entwicklungen zum automatischen Informationsaustausch eingegangen.

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Extending the scope of individuals filing tax returns

On April 7, 2016 the Israeli Parliament confirmed an amendment to the Israeli Income Tax Ordinance which substantially expands the reporting obligation for individuals. The amendment includes annual reporting for individuals, who are under the numerical day-test-rule presumed to be Israeli residents, however claim that they are not, for individuals who transfer a certain sum of money outside of Israel and to Israeli beneficiaries of a trust.

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Israeli Taxation Of Rental Income Received By Individuals

 Israeli Taxation Of Rental Income Received By Individuals

Do you have one or more apartments in Israel rented for residential purposes? A frequently asked question is the taxation of rental income of residential property received by an individual taxpayer.

The Israeli tax law offers three different tracks for the taxation of rental income: The regular taxation track, the exemption track and the 10 % track on the gross rental income. Summary of the 3 possible tracks.

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Recent changes in the field of Israeli Tax Law

A summary of recent changes in Israeli tax law,

such as reduced Vat-and corporate tax rate, recent news in the field of tax reporting requirements, exchange of information, voluntary disclosure and money laundering law:

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Voluntary Disclosure Program in Israel extended to June 30, 2016

On September 6, the Israeli tax authorities have announced an extension of the current special Temporary Voluntary Disclosure Procedure. The expiration date, which was originally scheduled to be September 7, 2015, has been extended and is now scheduled to be June 30, 2016. As a result of this extension, the taxpayer, who have not yet disclosed foreign income and assets, can still submit applications for a voluntary disclosure under the anonymous route as well as the fast track route introduced on September 7, 2014.

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Die neue – Erbrechtsverordnung fuer Erbfaelle mit Auslandsbezug

Ab dem 17. August 2015 gilt die Europäische Erbrechtsverordnung (EU-Verordnung Nr. 650/2012), nachfolgend EU-ErbVO, in allen EU Mitgliedstaaten, mit Ausnahme von Dänemark, Irland und Großbritannien.

Mit dieser ab 17. August geltenden EU-ErbVO wird das Erbrecht für EU Angehörige in einem wichtigen Punkt neu und einfacher geregelt. Anknüpfungspunkt für die Bestimmung des anzuwendenden Rechts im Erbfall mit Auslandsbezug ist nun der letzte gewöhnliche Aufenthalt des Verstorbenen.

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In absehbarer Zukunft – Globaler Automatischer Informationsaustausch

Die weltweite Bekämpfung der Steuerhinterziehung – und dabei insbesondere die grenzüberschreitende – ist im Gefolge der Finanz- und Schuldenkrise zu einem wichtigen und breit verfolgten Anliegen der Weltgemeinschaft geworden. Im Mittelpunkt steht dabei der immer wachsende Druck nach Informationsaustausch in Steuersachen und nach mehr Steuertransparenz.

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Relocation to the US – An Israeli Income Tax Perspective

Israeli residents relocate abroad for a variety of reasons. Lately foreign or multinational companies want to relocate their Israeli employees to the US, so that they can provide services, know-how or give instruction or explanation for the use of devices directly to their worldwide customers.

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Soon Standard: Global Automatic Exchange Of Information In Tax Matters

The global fight against tax evasion became in the wake of the financial and debt crisis an important and widely pursued concern of the world community. There is a growing demand for more intergovernmental exchange of information in tax matters and more tax transparency as an important tool to combat tax fraud and tax evasion.

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Germany: Stricter requirements for the voluntary self-disclosure of tax evasion

The German Fiscal Code provides for the possibility of a voluntary self-disclosure of tax evasion. Taxpayers are able to correct or complete their own incorrect tax returns. In such cases, if certain conditions have been met, the taxpayer will be exempt from criminal prosecution for tax evasion in respect for the previous incomplete or incorrect particulars.

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Israeli Tax Authority issues New Voluntary Disclosure Procedure

On September 7, 2014 in continuance with the Israeli Government’s policy to fight “black” money and to increase the collection of taxes in Israel, the Israeli Tax Authority (hereinafter: ITA) published a New Voluntary Disclosure Procedure that allows a taxpayer to report his/her non-reported income to the tax authority with the possibility to be exempt from criminal proceedings for not reporting.

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גילוי מרצון נוהל החדש – רשות המסים

בהמשך למדיניות הממשלה למלחמה בהון השחור והגדלת גביית המס, פרסמה רשות
המסים לפני שבוע את הנוהל החדש לגילוי מרצון, שמטרתו לעודד ולאפשר לנישומים לדיווח
על הכנסותיהם ללא הביטים פליליים.

קרא עוד >

Israel: Gesetz zur Förderung des Wettbewerbs und zur Einschränkung von Konzentrationen lässt Chancen für Investoren erwarten

Die Knesset hat ein Gesetz zur Förderung des Wettbewerbs und zur Einschränkung wirtschaftlicher Konzentrationen verabschiedet. Die beabsichtigte Entflechtung der israelischen Wirtschaft lässt erwarten, dass in den nächsten Jahren zahlreiche Unternehmen zum Verkauf stehen. Die ersten Meldungen, wie einzelne Konzerne die Vorgaben umsetzen wollen, liegen vor.

Weiterlesen >

Contact

Dr. Judith Taic Law Office

Sharbat House, 9 th floor

4 Kaufmann St., Tel Aviv 68012

Tel: + 972-(0)3 680 6800

Fax:+ 972-(0)3 613 3528

Mobile: + 972-(0)544 705 881

E-mail: drjtaic@law-intax.com

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