Trusts Have New Reporting Requirements in Israel

Trustees of Israeli trusts and Israeli trustees who are responsible for trusts that earn income from or hold assets in foreign countries have new reporting requirements effective from 2025. On April 7, 2024, an Amendment to the Israeli Income Tax Ordinance (No. 272), 5784-2024, was published that revoked the long-standing exemption from reporting obligations for first-time Israeli residents and returning residents, including certain trusts as well.

These alterations constitute one aspect of a larger-scale reform endeavor, which seeks to enhance tax transparency and revamp Israel’s international tax regulations, encompassing residency assessments, controlled foreign corporations (CFCs), foreign tax credits, ...