Client Update | The Insolvency and Rehabilitation Law, 2018
Dear Clients and Colleagues, On March 5, 2018 the Israeli parliament passed the Insolvency and Rehabilitation Law, 2018 (the “Law”). The Law establishes, for the first time, a modern and consolidated set of insolvency laws for individuals and corporations in Israel. In addition to the codification and consolidation of existing insolvency and rehabilitation rules from […]
Client Update | Revision of Israel’s Electronic Signature Law
On February 28, 2018 the Knesset amended the Electronic Signature Law, 2001 (the “Law”). This is the first major amendment of the Law since it was enacted in 2001, and the technological and practical uses of electronic signatures have developed and expanded since then. This amendment is intended to align the legal framework with commercial […]
New ITA Circulars Dealing with the Taxation of Private Equity and VC Funds, their Investors and Fund Managers
Dear Clients, Colleagues and Friends, On March 14, 2018, the Israel Tax Authority (the “ITA“) issued two circulars (9/2018 – Taxation of Venture Capital Funds and 10/2018 – Taxation of Private Equity Funds) dealingwith the conditions and specifics of a beneficial tax treatment route available for private equity and VC funds in connection with their […]
Client Update | Herzog Fox & Neeman Technology and Regulation
We are pleased to introduce you to our March edition of the Technology & Regulation Client Update, which includes several notable regulatory and industry developments in the fields of digital advertising, cryptocurrency advertising, data privacy, cybersecurity and technology compliance. To read the full client update – click here.
Tax Client Update | Revolutionary Case Law Changes the Capital Gain Calculation with Respect to Foreign Securities
On May 6, 2018 a revolutionary decision of the Supreme Court in the Or Sarah case, was published. The decision determines that capital gains of Family Companies should be calculated in New Israeli Shekels (NIS), with the cost basis adjusted to the Israeli Consumer Price Index, and not to the foreign currency in which the […]
Client Update | Brexit’s Effects on Intellectual Property Rights Protection
On March 19, 2018, the updated draft of the Agreement on the Withdrawal of the United Kingdom from the European Union (“EU”) was published. The draft provides, inter alia, for the continued protection of intellectual property rights in the UK post withdrawal, and particularly that of EU-registered trademarks, designs and plant-breeders’ rights. To read the […]
Client Update | Experimental Program for Applications of High-Tech and Cyber Companies for the Employment of Foreign Experts in Israel
We would like to draw your attention to the fact that a new procedure has recently been published, which establishes more lenient arrangements for regulating the employment of foreign experts in hi-tech and cyber companies. The new arrangements, as detailed below will apply to companies that are recognized as technological knowledge-intensive corporations by the Israel […]
Client Update | Law for Reducing the Use of Cash, 2018
On March 18, 2018, the Law for Reducing the Use of Cash, 2018 (the “Law”) was published in the Official Government Gazette (the “Gazette”). The Law is intended to limit the use of cash, as a way to fight crime and money laundering, and to enable the use of advanced and efficient means of payment. […]
Client Update | Supreme Court Ruling – Inclusion of Equity Based Compensation in Cost Plus Arrangements
On April 22nd 2018 the Supreme Court issued its much anticipated court ruling on two appeals which were consolidated into one case concerning the inclusion of equity based compensation accounting expenses in the cost base for purposes of determining the income of an Israeli R&D subsidiary implementing a cost-plus arrangement. To read the full client […]
Tax Client Update | Revolutionary Case Law Changes the Capital Gain Calculation with Respect to Foreign Securities
On May 6, 2018 a revolutionary decision of the Supreme Court in the Or Sarah case, was published. The decision determines that capital gains of Family Companies should be calculated in New Israeli Shekels (NIS), with the cost basis adjusted to the Israeli Consumer Price Index, and not to the foreign currency in which the security is […]
Client Update | Establishing a New Bank in Israel
Dear Clients and Friends, On June 3, 2018, the Bank of Israel (the “BoI”) published a circular (the “Circular”) detailing an updated simplified process for parties wishing to establish a new bank in Israel (the “Policy”). The Circular is the latest development in the ongoing reform of Israel’s banking sector, through which the relevant authorities […]
Client Update | Postponement of the Regulated Financial Services Law regarding Providers of Services in Financial Assets
On June 1, 2018, the provisions of the Supervision of Financial Services (Regulated Financial Services) Law, 2016 (the “RFS Law”), that set out licensing requirements for the provision of services in financial assets, were scheduled to come into effect. However, on May 31, 2018, in order to prevent a regulatory vacuum, the Minister of Finance […]
Client Update | Regulatory Updates from the Capital Market, Insurance, and Savings Authority | June 2018
On the 3rd and 6th of June 2018, the Capital Market, Insurance and Savings Authority published its regulatory updates for June 2018, including several directives and draft directives. To read the full update (in Hebrew) – click here.
Client Update | Prohibition Against Trading Foreign Securities – General Permit Conditions according to Section 49A – Draft for Public Comment
Following our Client Update of November 9, 2017 (to view the client update – click here), the Israeli Securities Authority (“ISA”) has published a draft for public comment regarding the policy of granting permits to global stock exchanges and broker-dealers who wish to provide services to the Israeli public. According to the Securities Law, it is illegal […]
Client Update | Communications Law (Bezeq and Transmissions) (Amendment No. 72), 2018
Dear Clients and Friends, On May 23, 2018, the Israeli Parliament introduced the Communications Law (Bezeq and Transmissions) (Amendment No. 72), 2018 (the “Amendment“). The Amendment refers to Section 30A of the Communications Law (Bezeq and Transmissions), 1982 (the “Law“), commonly known as the “Spam Law”. The Amendment addresses two main aspects: 1. Broadening the […]
Client Update | Changes in Cost-Control Drug Pricing Policy | June 2018
During the first half of 2018, four amendments to the legislation on cost-control of drug pricing [of preparations] in Israel were published. These amendments, some of which were effected immediately, and some of which will be implemented gradually, significantly change the cost-control mechanisms applied to prescription drugs in recent years and are expected to affect […]
Client Update | Prohibition Against the Sale of Electronic Waste
We would like to bring your attention to the latest guidelines from the The Ministry of Environmental Protection regarding the prohibition against the sale and disposal of accumulated electronic waste. For the full update (in Hebrew), click here.
Technology and Regulation Updates June 2018
We are pleased to present our June edition of the Technology & Regulation Client Update, which includes several notable regulatory and industry compliance developments in the fields of data protection, digital advertising, content, security and app compliance. These include the following: Facebook Page Administrator Responsible for Data Processing; The new European Data Protection Board Updated […]
Client Update | Rules for Commercial Engagements of Health Institutions
On the 18th of June, 2018, the Ministry of Health published a circular pertaining to the rules for the commercial engagements of health institutions, superceding the previous circular, last reviewed in 2010, due to come into effect on the 1st of November, 2018. For the full circular (in Hebrew), click here.
Client Update | Practical Guidance for Digital Marketing Companies for Exercising User Rights
We are pleased to provide you with this client update which contains a Practical Guidance for Digital Marketing Companies for Exercising User Rights. This Practical Guidance was prepared by Ido Manor from our Technology & Regulation Department to help digital publishers and advertisers (such as ad networks, agencies, DSPs and SSPs) find resources and tools that may help them meet new legal […]
Client Update | Technology & Regulation
We are pleased to introduce you to our July edition of the Technology & Regulation Client Update, which includes several notable regulatory and industry compliance developments in the fields of digital advertising, content, data privacy, security and app compliance. These include the following: Google, Facebook, Microsoft and Twitter have introduced an Open Source Platform Promoting […]
Client Update | Deduction of Input Tax by Holding Company
Recently, a District Court judgement relating to the issue of the deduction of input tax by a holding company was issued (the “Judgement“). The Judgement was given on June 28, 2018, in the case of Elbit Medical Imaging Ltd. v. the Regional VAT Director (the “Elbit case“). In this regard, under the Israeli VAT Law, input tax […]
Client Update | Israeli Broker-Dealer Legislation
The Israeli Securities Authority (“ISA”) has published a draft for the public’s comments regarding Bill regulating Broker-Dealers activity. Brokerage activity in Israel, as well as the activity of dealers who do not operate as Trading Platforms (as defined in the Securities Law), is currently not supervised and regulated and create a significant regulatory gap. The […]
Client Update | Increased Enforcement and Inspection by the Protection of Privacy Authority
To read the full update, in English, click here.
Client Update | The Israeli Innovation Authority’s New Special Licensing Rules for Multinational Corporations
The Israeli Innovation Authority (IIA), formerly known as the OCS, has published important new rules for multinational corporations regarding licensing of knowhow that was developed with IIA funding. The new rules enable Israeli and non-Israeli multinational corporations to license their IIA-funded knowhow within their group entities outside of Israel (“MNC Group License”), subject to IIA […]
Client Update | Technology and Regulation
We are pleased to introduce you to our new edition of the Technology & Regulation Client Update, which includes notable regulatory and industry compliance developments from the past month, in the fields of privacy and data protection, cyber-security, digital advertising, content and app compliance. These include the following: GDPR compliance warnings by the French Data […]
Client Update | The Israeli Tax Authorities Set New Safe Harbour Rules for Certain Transfer Pricing Transactions
The Israeli Tax Authorities (“ITA”) recently published two safe harbour circulars, which have been in draft mode for several months, stating the ITA’s expected profit levels for marketing services and for low-risk distributorship activities carried out in Israel by Multinational Entities (“MNE”), as well as providing guidance on non-value-added services. Herzog Fox & Neeman, together […]
Client Update | Labour and Employment | September 2018
With the summer holidays behind us, we would like to bring to your attention some recent legal updates and case law developments, which include: Amendment to legislation, permitting all employees to refuse to work on the weekly rest day; New rules regarding the withdrawal of severance pay from pension arrangements; Updates to the model rules […]
Client Update | Technology and Regulation
We are pleased to introduce you to our new edition of the monthly Technology & Regulation Client Update, which includes a variety of notable regulatory and industry compliance developments in the fields of personal data protection, digital advertising, content, data security and app compliance. These include the following: Data protection legislative trend in the US: […]
Tax Client Update | Israel Ratifies the MLI
Recently Israel informed the OECD that it has ratified the Multilateral Convention to Implement Tax Treaty Related measures to prevent Base Erosion and Profit Shifting (“MLI”), which was signed by the Minister of Finance on 7 June, 2017. The MLI is expected to come into force with respect to the relevant Israeli tax treaties (as […]