Israeli Tax Authority releases draft circular for comments on payments to a parent company under recharge agreements for grant of stock-based compensation
Executive summary
The Israeli Tax Authority (ITA) recently released for consultation1 a draft circular on payments to a parent company under recharge agreements for the grant of stock-based compensation (SBC) to the employees of its subsidiary (the Draft Circular).
The purpose of this Draft Circular is to outline the ITA’s position as to the intercompany charge payments between the Israeli company t…
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