15 April 2016 Israeli Tax Authorities publish official circular on internet activity of foreign companies in Israel Following a draft circular published by the Israeli Tax Authorities (ITA) in April 2015, on April 11, the ITA released their official circular on internet activity of foreign companies in Israel (the circular). The circular focuses on instances in which income of a foreign company could be attributed to a permanent establishment (PE) in Israel in the context of the digital economy. The ITA provides its view on implementation of the PE principles, distinguishing between foreign companies resident in a treaty country of Israel and companies resident in a non-treaty country. A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details. Document ID: 2016-0691 |
