In a bid to encourage the ingathering of the exiles – including Israeli Jews who have chosen to leave Israel and reside abroad - the Knesset Finance Committee approved changes today (Thursday) in tax benefits that will apply to new olim (immigrants to Israel) as well as returning Israelis.
The committee decision stipulates that Israelis who have spent at least six years abroad will benefit from extensive tax exemptions. At the same time, Israelis returning home after a two to six year “trip” abroad will see their current tax exemption on imported electrical appliances eliminated. The new regulations will come into effect on January 1, 2005.
The proposal to extend benefits to returning Israelis was put forth by Boaz Sofer, the deputy director of planning and economics for the department of customs and VAT of the Finance Ministry. The proposal suggested that Israelis returning after six or more years abroad be granted the same rights as new immigrants with regard to importing household items and business equipment. However returning Israelis would not benefit from tax benefits for cars (which new olim do).
The new benefits include a tax exemption on items such as video cameras, DVD players, and large-screen televisions, as well as laundry dryers, carpets, work tools worth up to $1,600 and business equipment worth up to $36,000.
The Ministry of Finance department of customs and VAT’s originally proposed cutting benefits for returning residents. The decision to grant residents returning after six years overseas the same benefits as new immigrants was apparently designed to encourage Israelis to return to Israel.
The committee decision stipulates that Israelis who have spent at least six years abroad will benefit from extensive tax exemptions. At the same time, Israelis returning home after a two to six year “trip” abroad will see their current tax exemption on imported electrical appliances eliminated. The new regulations will come into effect on January 1, 2005.
The proposal to extend benefits to returning Israelis was put forth by Boaz Sofer, the deputy director of planning and economics for the department of customs and VAT of the Finance Ministry. The proposal suggested that Israelis returning after six or more years abroad be granted the same rights as new immigrants with regard to importing household items and business equipment. However returning Israelis would not benefit from tax benefits for cars (which new olim do).
The new benefits include a tax exemption on items such as video cameras, DVD players, and large-screen televisions, as well as laundry dryers, carpets, work tools worth up to $1,600 and business equipment worth up to $36,000.
The Ministry of Finance department of customs and VAT’s originally proposed cutting benefits for returning residents. The decision to grant residents returning after six years overseas the same benefits as new immigrants was apparently designed to encourage Israelis to return to Israel.