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Israel Issues Circular on Taxation of Shareholders on Company Withdrawals — Orbitax

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Israel Issues Circular on Taxation of Shareholders on Company Withdrawals

|Approved Changes|Israel
Israel

The Israel Tax Authority has published Income Tax Circular No. 7/2017, which concerns new rules for the taxation of substantial shareholders (10% minimum ownership) on company withdrawals. The new rules provide that withdrawals of funds from a company by a substantial shareholder may be considered taxable income in the hands of the shareholder, including shareholder loans and guarantees of sha…

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