AUREN Israel – Your Trusted Partner in International Taxation

As a multinational company operating in Israel, understanding the country’s tax compliance requirements is crucial to ensuring smooth operations and avoiding regulatory pitfalls. At AUREN Israel, we specialize in international taxation, corporate accounting, and compliance services, offering comprehensive solutions tailored to the needs of global businesses.

Why is Tax Compliance in Israel Essential for Multinational Companies?

Israel has implemented stringent reporting obligations for multinational enterprises (MNEs) to align with international tax transparency initiatives. These regulations include Country-by-Country Reporting (CbCR), transfer pricing documentation, and corporate tax filings. Companies failing to meet these obligations may face financial penalties and regulatory scrutiny.

Key Tax and Accounting Obligations for Multinational Companies in Israel:

1. Annual Corporate Tax Reporting and Audited Financial Statements
   Every company operating in Israel, regardless of size or activity level, must legally submit annual audited financial statements. A certified auditor must review and approve these statements to ensure compliance with Israeli tax laws and international accounting standards. This requirement aligns with global standards and is fundamental to Israel’s corporate governance.
2. Country-by-Country Reporting (CbCR)
   Under the OECD’s Base Erosion and Profit Shifting (BEPS) framework, multinational groups with consolidated revenues exceeding €750 million (ILS 3.4 billion) must submit a CbCR. If the ultimate parent entity is not based in Israel and its jurisdiction does not share tax information with Israel, the Israeli subsidiary must submit a local CbCR filing.
3. Transfer Pricing Documentation
   Companies engaged in transactions with related parties must prepare transfer pricing reports to justify intercompany pricing in compliance with Israeli tax laws and OECD guidelines. Failure to comply may lead to tax adjustments and penalties.
4. Withholding Tax and VAT Compliance
   Cross-border transactions, including service payments and royalties, may be subject to withholding tax. Additionally, businesses must ensure compliance with Value-Added Tax (VAT) regulations, including proper reporting and invoicing.
5. Ultimate Beneficial Ownership (UBO) and Economic Substance Requirements
   Israel enforces transparency rules regarding ultimate beneficial ownership to prevent tax avoidance. Companies must disclose key ownership details as part of their compliance obligations.

How does AUREN Israel Support Multinational Businesses?

Comprehensive Tax Advisory & Compliance Solutions

At AUREN Israel, we provide full-spectrum tax and accounting services designed to meet the complex regulatory needs of international corporations. Our services include:

• Corporate Tax Filing & Reporting – Ensuring accurate and timely submission of tax returns.
• CbCR & Transfer Pricing Documentation – Assisting multinational groups in meeting reporting obligations.
• VAT & Withholding Tax Compliance – Managing indirect tax compliance for global transactions.
• Audit & Financial Statement Preparation – Supporting businesses adhering to IFRS and Israeli GAAP.
• Regulatory Representation & Tax Dispute Resolution – Representing clients before the Israeli Tax Authority (ITA).

Why Choose AUREN Israel?

• Expertise in International Taxation – Decades of experience serving multinational corporations.
• End-to-End Compliance Services – A one-stop solution for corporate tax, VAT, and transfer pricing.
• Personalized Advisory – Tailored guidance to optimize your tax position while ensuring full compliance.
• Global Network with Local Expertise – As part of AUREN International, we offer worldwide support with deep local knowledge.

Ensure Compliance & Optimize Your Tax Strategy in Israel

Navigating Israel’s tax and accounting landscape can be complex, but with AUREN Israel, you gain a trusted partner to simplify compliance and maximize tax efficiency.

Contact us today to learn how we can help your multinational company stay compliant and thrive in Israel.

Ofir Angel

Chairman of AUREN Israel

“Business generator” and expert in geo-strategic consulting for international companies

[email protected]