Trust Distributions – A View from Israel
Dr Judith Taic gave a presentation about taxation of trusts in Israel at the STEP South Africa
Virtual Conference, 21 April 2021.
One of the basic principles of taxation of trusts in Israel is that the tax liability depends on
the residency of the settlor and/or beneficiary. In contrast to most other jurisdictions, the
residency of the trustee or the place of control and management of the trust are irrelevant.
Furthermore, the tax status of a trust in Israel depends on the classification of the trust
according to the Israeli Income Tax Ordinance. There are 5 different types of trusts. The tax
rate for trusts is the rate applicable to individuals. The trustee, whether local or foreign, is in
general liable for filing the proper documentation and the tax return for the trust.
For more: Presentation at the STEP South Africa Virtual Conference, April 2021
