International Tax Accountant in Raanana

International Taxation in Israel — Who Does It Affect?

International taxation is a field that affects far more Israelis than most people think. It's not just about journalists in New York or engineers working for an American company. It also includes a freelancer receiving work through an international platform, a content creator earning dollars from YouTube, or a startup founder whose company operates in the global market.

Ben Or Kook has extensive experience in this field. We've encountered freelancers who didn't know they were required to report foreign bank accounts, companies that expanded internationally and suddenly faced complex tax questions, and new immigrants who arrived with foreign assets and were confused about Israeli reporting requirements.

If you're a resident of Raanana or the surrounding areas of Ramat Gan and Petach Tikva, and you have financial connections abroad — now is the time to clarify your situation. Incorrect reporting or late filing can result in interest, penalties, and in serious cases — a tax authority investigation.

What Exactly Does International Reporting Obligation Include?

International reporting in Israel consists of several layers. First, there is reporting of foreign income — this is reported in the regular annual tax return, like any other income. If you're a freelancer with income from Upwork or Fiverr, or a company with foreign sales — this must appear in your financial statements.

But there's more to it. If you have a foreign bank account with an average balance during the year exceeding a certain amount (currently typically around $100,000 or equivalent), you are required to report this to the tax authority using the FBAR form. This is a separate report with its own filing deadlines.

If you own shares in a foreign company, a foreign investment fund, or other assets that generate income — there are additional reports. It's not always clear to someone who opened a foreign bank account to facilitate work with clients abroad, but reporting is mandatory.

What's important to remember: the Israeli tax authority cooperates with tax authorities worldwide. If a foreign bank account is not reported, there is a high risk that the bank itself will report you. This typically happens from the United States, Canada, Europe, and several other countries.

Real-World Example: A Freelancer Working Through an International Platform

We have seen many such cases in recent years. A freelancer in design or programming who receives work through platforms like Upwork, Toptal, or Fiverr. He earns in dollars or euros, transfers the money to a foreign bank account to avoid currency conversion issues, and at year-end — is not entirely sure what he needs to report.

The problem: He did not report the income properly, did not report the foreign bank account, and thought that if the money did not enter Israel — it was not relevant. A mistake. The Israeli Tax Authority treats income from anywhere in the world as taxable income in Israel.

When he came to us, we resolved the matter. Retroactive reporting for previous years (under certain conditions), proper reporting for the current year, and reporting of the foreign bank account. Today he is at peace, because everything is organized and formal.

Common Mistakes in International Reporting — and How to Avoid Them

First Mistake: It is important to remember that foreign-source income is not exempt from reporting simply because it is earned abroad. We often see self-employed individuals who think that as long as they did not bring the money into Israel, there is no need to report it. This is incorrect. Reporting must be based on income, not on cash flow.

Second Mistake: Failure to report a foreign bank account. People think that if it is a small account or they do not use it constantly, there is no need to report it. Reporting must cover every foreign bank account, regardless of size or frequency of use.

Third Mistake: Failure to report income from foreign assets (interest, dividends, rental income). If you have investments abroad, you must report all income they generate.

Fourth Mistake: Lack of tax planning. People earn abroad and suddenly at year-end discover they owe a large tax bill. Advance planning can significantly reduce this burden.

What is the Correct Way to Plan International Taxation?

Tax planning is an international process. It does not happen in December when you are ready to file your annual report. It begins at the start of the year, or even before.

First, you need to understand your tax situation. If you are self-employed, we check whether it is better for you to be an exempt business owner or a licensed business owner. If you are a company, we check the company structure, the type of reports you need to file, and international reporting requirements. If you are an employee with foreign income, we check whether you are entitled to deductions or benefits.

Second, we monitor income and tax liabilities throughout the year. This helps us identify issues early and suggest corrections or planning strategies before it is too late.

Third, we handle required reports on a timely basis—not in December when it is a holiday. This greatly reduces the risk of errors or delays.

Why Should You Contact an Accountant on This Matter?

International taxation is a field that requires deep expertise. It's not just about understanding reporting in Israel, but also understanding how other countries regulate the matter, how there is overlap between countries (to avoid double taxation), and how to use international agreements to plan legally.

Ben Or Kook assists both self-employed individuals just starting out and large companies with international operations. We speak the language of international taxation and know how to translate it into simple language that any business owner can understand.

Additionally, we provide personalized guidance to clients in Raanana, Ramat Gan, and Petach Tikva. Face-to-face or digital meetings as needed, regular updates on legislative changes, and genuine support not only in reporting but also in planning.

When should you contact an accountant regarding international taxation?

If you are starting a new job that includes foreign income — now. Do not wait. Early consultation helps plan the reporting correctly from the start, rather than correcting errors at the end of the year.

If you already have foreign income and have not reported it yet — now as well. The sooner you arrange it, the easier it is to do it correctly.

If you are a business owner planning to expand abroad — plan it with an accountant before you make the move. This will save you tax headaches along the way.

Ben Or Kook offers a first consultation meeting free of charge. In this meeting, we can understand your situation, identify the risks, and propose a clear action plan.