The recent 2024 amendment to Section 102 of the Israeli Income Tax Ordinance introduces key updates to the rules governing employee share allocation plans, offering significant tax advantages by taxing benefits as capital gains rather than employment income. The amendment enhances the Israeli Tax Authority’s oversight, replacing the notification requirement with a mandatory application for plan approval, extending reporting deadlines, and adding new reporting requirements. These changes will take effect on January 1, 2025.
For more information, please refer to the newsletter authored by Partner Keshet Sirota-Leviner, Head of Naschitz Brandes Amir’s Tax Practice, and Associate, Hadar Mauda.
Click here to read the newsletter.