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Extension of Period for Depositing Awards Under Trustee Routes

Media Centre

Extension of Period for Depositing Awards Under Trustee Routes

21 November 2023

Dear Clients and Friends,

On November 19, 2023, the Israeli Tax Authority (the “ITA“) published a notice of instruction which provides for an extended period of time to deposit awards granted under the trustee routes of Section 102 of the Israeli Income Tax Ordinance.

The extension applies to all awards which were supposed to be deposited with the trustee between October 1, 2023 until December 31, 2023 (the “Period”). The implications are that if a board resolution needed to be deposited with the trustee during the Period (based on the 45 day deposit requirement), there is an automatic extension such that the board can be deposited until December 31, 2023. Furthermore if award agreements or share certificates were supposed to be deposited with the trustee during the Period (based on the 90 day deposit requirement) there is an automatic extension such that the award agreement or certificate can be deposited until December 31, 2023.

The notice also includes a statement pursuant to which the filing of new plans with the ITA can be done through the ITA’s automated systems for representatives and the filing system for the public on the ITA’s internet site.

If you are in doubt with respect to the timeline for deposit of your awards please do not hesitate to contact us.

To read the Hebrew version of the notice of instruction please >> click here

 

 

Sincerely,

Herzog Fox & Neeman

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