On March 6, 2024, a proposal was published to amend the Income Tax Ordinance. The amendment proposes to cancel the exemption from reporting obligations for individuals who are new residents of Israel and returning residents with a long-standing status. Additionally, the amendment proposes to impose reporting obligations on controlling shareholders (Section 135b of the Ordinance). These obligations apply to legal entities such as companies and trusts.

‍

In light of the proposed amendment, it is suggested to amend the Income Tax Regulations (Exemption from Filing a Report) and to cancel the exemptions from reporting obligations granted to individuals who are new residents of Israel and returning residents with a long-standing status. Furthermore, it is suggested to expand the exemption specified in Regulation 3(1) of the Regulations so that a controlling shareholder, as defined in Section 153b of the Ordinance, will not be exempt from submitting an annual report.

‍