Fiscal Representation in Israel

If you are a foreign company or any other business entity, whose taking steps toward the establishment of a business in Israel; we are recommending you to come and meet our professional consultants. A fiscal representative office might be a great solution that we can provide.

Each business that conducts a business activity of any kind in Israel requires by the local law to report and pay taxes to the Israeli tax authorities.

Regardless of the chosen formal structure. Whether it is a company establishment or a registration of a branch in Israel. From the establishment of a registered company, a branch, a related company or a subsidiary. Also, there are local requirements of the Israeli law, which should be complied with when basing and conducting business activity in Israel.

Before starting and conducting any business activity in Israel, it is advisable, either to register a fiscal representative office that functions as a local representative of the foreign business entity or to establish an Israeli company.

A foreign business entity that decides not to establish a local company in Israel must meet the requirements of section 60 of the Value Added Tax (VAT) Law, 1975which requires the appointment of a fiscal representative for a foreign company that conducts its business in Israel.

The representative should be an Israeli resident or a registered corporation in Israel. A foreign company is obligated to report to VAT authorities in Israel within 30 days regarding its representative’s identity for tax purposes.

We are offering our services as your fiscal representatives, to represent your company: submitting tax reports to the tax authorities and managing nonresidents’ funds according to the requirements of the local laws in Israel.

A fiscal representative has personal liability for all tax and legal obligations, to deal with the local authorities in Israel, which are related to the local office operation for the behalf of the foreign company head office located abroad. Legally the local office is under the supervision of the head office of the foreign company. 

Our services include:

  • Representation of foreign companies before Israeli authorities, including income tax, VAT, social security, etc.
  • Primary tax planning before future transactions (“Pre-ruling“)
  • Supervision of the business activity of the foreign entity in Israel, dealing with various local bodies; including business and strategic partners, suppliers, banks, financial institutions, and authorities
  • Assistance in selecting appropriate service providers if needed, such as attorneys, insurance agents, IT systems suppliers, etc.
  • Support in various operational and logistical issues
  • Assistance in relocating personnel to Israel, including employment arrangements, foreign worker status arrangements according to the Trade Law, obtaining special work permits, payroll preparation, etc.
  • Providing auditing, accounting, and financial management services for foreign entities in Israel
  • Executive compensation strategy and options plans which meet the Israeli law requirements, limitations and to profit from its benefits
  • Business support and financial consulting regarding foreign corporations’ worldwide business activities, with emphasis on Israel, including company evaluation, due diligence, strategy and business development assistance in international and Israel transactions, PPA, etc.

Auren Israel represents many foreign companies, which chose to register a fiscal representation through a local company. This local office or branch functions as a foreign company branch in Israel.