Treasury moves toward cancellation of makam tax exemption

Sources inform ''Globes'' that the Ministry of Finance today submitted an amendment to cancel the tax exemption for foreign investors' profits on investments in makams (short-term Treasury notes). The bad news is that, at best, the legislative process will likely be protracted and the cancellation will only come into effect in three months at the earliest.

The amendment must go to all the ministries for their comments by April 27. The proposal also needs approval of the ministerial legislative committee, and ass all three Knesset readings and discussions by the Knesset Finance Committee. The process is unlikely to begin before May 15, when the Knesset recess ends. Moreover, a clause in the proposed amendment states that there will be a one-month adaption period, which could further delay implementation of the cancellation.

The Ministry of Finance told "Globes", "The cancellation is expected to come into effect in May or June."

Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2011

Treasury moves toward cancellation of makam tax exemption

The Finance Ministry today submitted an amendment to cancel the tax exemption for foreign investors' profits on investments in makams.