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Tax benefits for new immigrants get nod

מאי 25, 2008. Globes: Zeev Klein

The tax exemption covers all types of foreign income.

The ministerial committee for legislative affairs today approved extending tax breaks for new immigrants and returning Israelis as part of the country's 60th Independence Day celebrations. The breaks include a ten-year exemption on reporting and paying taxes on foreign income. The exemption covers all types of foreign income, including interest and dividend payments, salary and income from work, and revenue from a business and sale of foreign property.

The plan will be submitted to the cabinet and then the Knesset for approval, and will come into effect on 1 January 2009. Minister of Finance Ronnie Bar-On, who was one of the initiators of the plan, said that returning Israelis would enrich the country with their international experience and know-how, and improve the country's economic performance and competitiveness.

Minister of Immigrant Absorption Yaakov Edery said that the plan was a breakthrough that would enable many Jews from around the world and hundreds of thousands of Israelis who reside abroad to come to Israel without fear for their livelihoods.

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