International Tax Accountant
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International taxation is a complex and essential field for anyone with income, assets, or business relationships abroad. Whether you are a self-employed professional operating internationally, an employee who received a grant from a foreign company, a new immigrant from the United States, or a company owner undergoing relocation, proper reporting to the Israel Tax Authority and international authorities is essential — and complex.
Ben Or Kok Accountants specializes in assisting professionals and residents who require accurate and reliable international tax planning. With experience since 2008, the firm provides personalized consulting in foreign reporting, FBAR (Foreign Bank Account Report), international income tax, and relocation procedures for professionals and companies. Our service is thorough, digital, and grounded in accounting precision — so you can focus on your business.
What is International Taxation?
International taxation deals with tax liability on income and savings of Israeli residents with economic relationships abroad. Israel has bilateral tax treaties with many countries, as well as strict reporting requirements to Israeli tax authorities. Every Israeli resident must report foreign income, foreign assets, foreign bank accounts, and certain transactions with foreign entities — even if they are not direct payments.
The risk of errors in international reporting is very high: complex laws, strict filing deadlines, and rigorous documentation requirements. Any error can result in financial penalties, interest, and enforcement action, and in serious cases — tax investigation. Therefore, professional consulting from an international accountant is a vital investment.
Who Needs an International Tax Accountant?
- Self-employed professionals and business owners operating internationally, sending services or goods abroad, or receiving income from foreign companies.
- New immigrants from abroad (especially from the United States) who have assets, bank accounts, pension funds, or shares in their countries of origin.
- Employees who received cash grants, stock options, bonuses abroad, or partial salary from a foreign company.
- Asset owners abroad — an apartment, land, bank account, investments, or other property located outside Israel.
- Company owners undergoing relocation — establishing a company in Israel or transferring business from abroad to Israel requires careful tax planning.
- Foreign residents with income in Israel — foreign entrepreneurs or foreign workers employed in Israel must report to the Israeli Income Tax Authority.
Main Services of an International Tax Accountant
An international tax accountant specializes in several critical areas:
International Tax Services
Foreign Income Reporting and International Tax Planning
Foreign income (salary, royalties, dividends, self-employment income) must be fully reported to the Israeli Income Tax Authority. We assist in tax calculation, utilizing tax treaty benefits, and strategic planning to reduce double taxation.
FBAR and Foreign Bank Account Reporting
Every Israeli resident with a foreign bank account with an average balance of $50,000 or more must file a special FBAR report. This law is very strict, and failure to report can result in severe penalties. We handle timely filing, accuracy, and coordination with the authorities.
Foreign Assets Reporting and Capital Declaration
Apartments, land, stocks, foreign pension funds, and foreign insurance must be reported in an annual capital declaration. Each asset requires accurate valuation and reporting at the correct time. We assist in identifying all relevant assets and filing in compliance with regulations.
International Income Tax for Professionals and Companies
Self-employed professionals and limited liability companies in Israel with foreign income or international operations require an accurate annual report with separation between Israeli and foreign income. We handle full bookkeeping, international VAT, and corporate tax calculation.
Relocation Support and Tax Planning for New Immigrants
New immigrants from abroad require careful tax planning in the year of arrival and in subsequent years. We assist in understanding immigrant tax rights, utilizing transitional provisions, and managing assets and liabilities in the country of origin.
International Tax Coordination and Foreign Authority Reporting
Business owners with international companies or partnerships must report to tax authorities abroad as well. We assist in coordinating Israeli reports with foreign reports, FATCA (U.S. reporting), and similar foreign reports.
International Taxation for Different Groups
Self-Employed and Licensed Practitioners with Foreign Income
A self-employed person or licensed practitioner in Israel with foreign income (such as digital services, exports, or freelance work for foreign companies) must report all such income for Israeli income tax purposes. Foreign income is taxed at the same rate as Israeli income; however, taxes paid abroad may be deducted (up to the Israeli tax rate). Additionally, such practitioners must file VAT reports on international transactions, subject to VAT law provisions. We assist with reporting procedures, tax planning, and management of international VAT.
Employees with Foreign Income or Grants
An Israeli employee who received a monetary grant from a foreign company, a foreign bonus, stock options, or partial salary from abroad must report all such income. Additionally, if they work partially abroad (remote work), they must report the portion attributable to foreign sources. Many employees are unaware of this obligation, which can lead to tax errors. We assist in calculating international employee tax on a doctrinally sound basis and in obtaining tax refunds.
New Immigrants from the United States and Abroad
New immigrants require precise tax planning in their year of arrival and in subsequent years. In the year of arrival, a new immigrant is generally not taxed on foreign income earned abroad (subject to certain conditions); however, they must report all foreign assets. In subsequent years, they are taxed like any Israeli resident. Additionally, a new immigrant from the United States may be subject to FATCA reporting requirements to the U.S. government (even if no longer a U.S. resident). We specialize in navigating immigrant tax laws and the tax rights of new immigrants.
Business Owners in the Relocation Process
A business owner relocating operations from abroad to Israel (or vice versa) requires comprehensive tax planning. Relocation entails reporting asset transfers, calculating gains and losses, and reconciling Israeli and foreign reports. Poor planning can result in double taxation, penalties, or financial losses. We provide full guidance from the planning stage through the filing of the first reports.
Common Risks in International Reporting — and How to Avoid Them
An experienced international tax accountant knows how to identify and avoid common risks in this field:
- Failure to report foreign income: Foreign income not reported to Israeli income tax authorities can result in retroactive tax assessments, interest charges, and penalties. The Israeli tax authority has acquired new tools for detecting foreign income (FATCA reports from foreign banks), making the risk very high.
- Errors in FBAR reporting: Incorrect or late FBAR reporting can result in penalties of up to $10,000 or more. The FBAR law is extremely stringent, and even a technical error can be considered a violation.
- Failure to utilize tax treaty benefits: Bilateral tax treaties between Israel and other countries provide tax relief (tax exemption, reduced rates, or relief from double taxation). An inexperienced accountant may miss these benefits, resulting in higher tax payments than necessary.
- Incomplete reporting of foreign assets: Foreign assets (real estate, bank accounts, investments) must be reported in an annual capital declaration. Failure to report or incomplete reporting can result in tax assessments, interest charges, and investigation.
- Inconsistency between Israeli and foreign reports: A business owner with international operations who calculates different profits in Israel than abroad may face tax investigations in both countries. Proper reconciliation is essential.
How Ben Or Kook Assists with International Reporting
Ben Or Kook Accountants provides comprehensive support in international taxation:
- Initial consultation: A free initial consultation meeting in which we understand your situation, your foreign income, your assets, and your reporting requirements.
- Tax planning: We develop an international tax plan tailored to your circumstances, utilizing all available benefits and managing risks.
- Full accounting services: For self-employed persons and companies, we manage your books, calculate taxes, and handle international VAT reporting.
Scenario Comparison — What Must Be Reported?
Below is a table presenting common scenarios and international reporting requirements:
| Scenario | Income Tax Reporting | FBAR / Bank Account Reporting | Capital Declaration |
|---|---|---|---|
| Self-employed with foreign income (services, export) | Yes — Full reporting | Yes — If balance ≥ $50,000 | Yes — If foreign assets present |
| Employee with bonus from foreign company | Yes — Taxable income | No (unless foreign bank account exists) | No (unless foreign assets exist) |
| New immigrant in year of arrival (with foreign assets) | Generally exempt on foreign income | Yes — Mandatory reporting | Yes — Mandatory reporting |
| Foreign real estate owner (no income) | No (unless income from property) | No | Yes — Mandatory reporting |
| Business owner in Israel with foreign income | Yes — Full annual report | Yes (if company has foreign bank account) | Yes — If company has foreign assets |
| Non-resident with income in Israel | Yes — Taxable in Israel | No (unless also Israeli resident) | No (unless also Israeli resident) |
Note: This table is a general guide only. Each case requires individual review by an international tax accountant, as international tax regulations are complex and depend on specific circumstances.
Frequently Asked Questions — International Taxation
Why choose Ben-Or Kook accountants for international taxation?
What guides our day-to-day work
Experience since 2008
With years of experience advising self-employed individuals and companies in the field of international taxation, we are familiar with the pitfalls, reliefs, and opportunities.
Personal and dedicated advice
We do not treat your file as a number. Each client receives personal attention, understanding of their circumstances, and professional guidance throughout the entire process.
Absolute accounting accuracy
In the field of international taxation, a small error can lead to significant penalties. We practice absolute precision in every report, documentation, and calculation.
Up-to-date with legislation
International tax laws change frequently. We monitor changes and ensure that your reports are always current and compliant.
Digital and accessible service
You can call, send an email, or schedule a video meeting at your convenience. We are available, respond quickly, and keep you updated at all times.
First consultation meeting at no cost
We believe in transparency and personal attention. Schedule a first meeting without obligation—so you can get to know the firm and decide if we are the right fit for you.
Start your international tax planning today
If you are self-employed, an employee, a new immigrant, or a business owner with international income, you need an experienced international accountant. Ben-Or Kook offers personal, digital, and accessible advice in the field of international taxation.
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