International Tax Accountant in Ramat Hasharon

International Taxation — Who Needs It and Why

International taxation is not a subject that can be ignored. If you operate in Jaffa or another city in Israel, and you have overseas income, assets abroad, or you are a new immigrant who has not yet understood the tax implications — improper reporting can result in substantial penalties from the Israeli Tax Authority.

Most business operators we see in Jaffa and in Ramat Gan come to us when there is already a problem: incomplete reporting, delayed FBAR filing, or an unexpected tax assessment change. The right approach is to act early — when the business is still in its initial stages or when planning to expand into international markets.

Ben Or Kook specializes in guiding entrepreneurs, self-employed individuals, and companies with an international dimension. We help you understand the tax implications, report correctly to the Israeli Tax Authority, and avoid paying more than required.

What Does International Tax Guidance Include?

When discussing international taxation, there are several dimensions that are important to understand. First, there is a distinction between a business operator with foreign-source income and one with overseas assets — both require reporting, but not the same reporting.

If you are a self-employed individual or a licensed authorized business operator in Jaffa who receives payments from abroad — you must report this income on your income tax return, and like any other income, it is subject to VAT and national insurance deductions. However, there are additional reports that the Tax Authority requires.

If you have a bank account abroad, investments, real estate, or any assets worth more than $50,000 — you must file an FBAR report (Foreign Bank Account Report). This is not an additional tax; it is an information disclosure. However, if you have not reported it — this is a significant problem.

If you are a new immigrant who has arrived in Israel from abroad, you also have issues regarding capital declaration, reporting of assets received abroad, and in certain cases — taxation of income accrued abroad before arrival. All of these require precise guidance.

Key Steps in International Tax Guidance

When you come to us with a question about international taxation, we begin with a comprehensive review of your financial situation. It's not just a question of "I have foreign income" — we need to understand the type, frequency, sources, and whether you also have assets abroad.

In the first stage, we organize missing or incorrect reports. If you are a licensed business owner in services with foreign income, we ensure it is properly reported in your periodic VAT returns. If you are a exempt business owner, there is no VAT reporting, but there is income tax reporting.

In the second stage, we check whether there is an FBAR reporting obligation. Generally, any Israeli resident with a foreign bank account with an average balance exceeding $50,000 per year is required to file a report. This is an annual report, and even if you are not liable for tax on foreign income, the report itself is mandatory.

In the third stage, we plan ahead. If you are starting out with an international business, we help you understand the tax implications before making major decisions. For example, if you are considering establishing a company abroad or investing in real estate abroad — there are ways to structure the asset or organize it in a more tax-efficient manner.

In the fourth stage, we handle periodic filings and annual reports. If you are a licensed business owner, we ensure that your VAT reports properly reflect international income. If you are a company, we prepare your annual report with all required filings.

FBAR and Foreign Reporting — What It Is and Why It Matters

A question we often hear: "I'm not earning anything from this foreign account — why do I need to file a report?" The answer is simple: FBAR is an information report, not an income report. The Israeli tax authority wants to know if you have assets abroad. If you haven't reported them, and your income from this account is zero — it's still a problem.

Generally, every Israeli resident who has a bank account abroad, investments, a foreign pension fund, or any asset worth more than $50,000 in total must file an FBAR report. This report is annual, and is usually filed as part of your annual tax return or as a separate report.

What happens if you don't report? The Israeli tax authority can impose significant penalties — typically a percentage of the value of the asset you failed to report. If this has happened to you, it's not too late. There are settlement procedures with the tax authority, and in most cases, if you settle it yourself, the penalty is much lower than if the tax authority discovers it during an audit.

We at Ben Or Kook help business owners in Tel Aviv and the central region settle missing reports. We contact the tax authority, explain the situation, and file the missing reports with a request to reduce penalties. Usually, if you act in good faith, the tax authority is willing to work with you.

Relocation and New Resident Tax Consolidation

If you are a new immigrant in Talpiot or in the central region, you have a special right called "tax consolidation rights" or "new immigrant status". This means that for a certain period (usually up to 10 years), you pay tax only on income sourced in Israel. Foreign income is not subject to taxation in Israel.

This sounds simple, but there are several things that are important to understand. First, this right is not automatic — you must meet certain conditions. Second, if you are engaged in business, you must prove that the income is actually sourced abroad, not in Israel. Third, if you are in a company, the rules are slightly different.

Most immigrants we see come to us when they are already in their second or third year in Israel, and it is unclear to them whether they are still entitled to tax consolidation. We examine your situation, verify that you meet the requirements, and handle all necessary filings so that you can enjoy this right.

If you have not yet submitted a consolidation request — this is the place to start. If you have already submitted it but are unsure whether it was done correctly — we can review it. And if you are concerned that you may lose the right due to some error — we can help you resolve it.

Common Mistakes in International Tax Reporting — and How to Avoid Them

Over years of working with businesses in the diaspora and abroad, we have seen certain mistakes that repeat themselves. The first and most common mistake is to assume that if you are not paying taxes abroad, you do not need to report in Israel. This is not true. The Israeli Tax Authority wants to know about all income, regardless of taxes paid abroad.

The second mistake is failing to report foreign bank accounts. We see business owners who have a bank account abroad where they hold money for their business, and because they think it is a "business account" and not a "personal account," they do not report it. The Tax Authority does not distinguish between the two types — if you have a balance of more than $50,000, you must report it.

The third mistake is assuming that FBAR reporting is tax reporting. It is not. It is information reporting. However, if you have not reported it, the penalty may be significantly higher than the tax itself. We have seen cases where a business owner who did not report a foreign account worth $100,000 received a penalty of NIS 20,000 or more.

The fourth mistake is failing to maintain documentation. If you receive payments from abroad, you must keep all documents — employment contracts, invoices, bank statements, anything that proves the source of income. If the Tax Authority asks, and you cannot prove it, that is a problem.

The fifth mistake is assuming that a general accountant can handle international taxation. This is not true. International taxation is a specialized field that requires deep knowledge. If you are a business owner with foreign income, it is advisable to choose an accountant who has experience in this area.

When Should You Contact an Accountant in Tel Aviv Specializing in This Area?

If you're reading this and considering whether you need accounting assistance with international taxation — here are some signs that now is the time:

If you are a self-employed person in Tel Aviv who has opened a business and started receiving payments from abroad — now is the time. Don't wait until next year. When you're starting out, it's much easier to report correctly than to fix mistakes later.

If you are an employee in Tel Aviv and have a bank account abroad — now is the time. You may not need annual accounting guidance, but it's advisable to check if you need to file an FBAR report.

If you are a new immigrant in Tel Aviv and are unsure about your tax rights — this is definitely the time. New immigrant rights are limited in time, and every month that passes is a month you won't be able to use later.

If you own a company in Tel Aviv that has assets or income abroad — now is the time. an annual report with international disclosures requires proper planning and preparation.

If you're concerned you have missing reports from the past — this is definitely the time. With each passing year, the problem grows. We can help you resolve this.

Ben Or Kook provides a free initial accounting consultation. If you are in Tel Aviv and have questions about international taxation, FBAR, foreign reporting, or anything related to the international dimension of your business or income — we are here to help. We will listen to you, review your situation, and provide you with a clear answer about what needs to be done next.