Israel To Tax Google, Facebook


facebookThe Tax Authority head says rules for global Internet companies will be published shortly.

The Israel Tax Authority will collect VAT and income tax from Internet giants such as Google and Facebook on their extensive activity in Israel, Tax Authority director Moshe Asher declared at the Institute of Certified Public Accountants in Israel conference in Eilat last week.

Asher said that within the next few days the Tax Authority would publish a circular on the matter, the product of staff work over more than a year. He said that the circular would regularize the question of the taxation of the business activity of international Internet companies that operate in Israel but do not pay tax on their revenue.

This question was the basis of a petition filed in the High Court of Justice against the minister of finance and the Tax Authority director, Google, and Facebook. The petitioners argued that the effective exemption from VAT for these giant companies should be removed. In March this year, the court rejected the petition, on the grounds that the minister of finance and the Tax Authority had declared that they were formulating taxation rules that would apply to these companies.


{ Israel}