Tax decision domain : International Taxation
Theme: Regulating the tax implications regarding the activities of foreign airline in Israel – Resolution taxation agreement
the facts:
1. A company incorporated in a foreign country which exists between Israel double taxation treaty (below
Respectively: “State Convention” And - “Convention”) Is an airline which transports passengers
And charge through the provision of international airports (below: “Foreign Company”).
2. According to domestic law in the State of the Convention of the foreign company is considered a resident of the State Tax Convention,
It is subject to tax in the State Treaty on Revenue, Including those produced in Israel, as described
below, And does not constitute a tax transparent entity.
3. The foreign company's marketing activity in Israel flights performed using 2 Primary Agents
License holders to act on behalf of the foreign company in Israel – The first and second transporting passengers
Transporting cargo (below: “The main agents”).
The main agents companies resident in Israel are owned by third parties, Non-parties
Related to the foreign company, Who reported income in Israel.
4. The foreign company operates through agents in the main line between Israel and airports State
The Convention, which includes a number of operating passenger flights per week and one weekly cargo flight,
And is expected to increase activity in the natural growth in passenger numbers traveling
And entering.
5. In support of the above activities the foreign company rented office space at the airport Ben- Gurion University
It is used to operate the front office also serves as the company's head office
Israeli foreign (below: “Office router”third”).
6. Office router”C helps to ongoing operations of the line, Including the sale and issuance of airline tickets,
Handling payments for excess baggage weight, Selling first-class upgrades and department
Business, Troubleshoot problems with flight tickets and ticket change, Assistance with issues and problems
More customers.
7. For the sale of airline tickets will be assisted by the foreign company also provides Yat”A (forgein company
International air traffic). Also, The foreign company's sales will also air tickets
Through its online website.
8. The foreign company has several employees in Israel who admire the permanent office router”third
And employs Station Manager, And reports wages paid to them in her bag which deductions
Goes one tax assessor (below: “Deduction portfolio”).
Also, And may the foreign company's employees, People of the Covenant and other foreign countries,
Come to Israel to carry out training of Israeli workers and anyone in Israel on a temporary basis.
9. The foreign company is expected to generate revenues in Israel following activities (below: “Aviation revenues
International” And / or “International traffic revenues”) Through the main agents
And through the branch established by it in Israel (below: “The branch”):
9.1 Sale and issuance of airline tickets for passengers staying in Israel. These air tickets
Include the following alternatives:
(one way) 9.1.1 One-way flight from Israel to the State Convention
.(round trip) 9.1.2 Round-trip flight from Israel to State Convention
9.1.3 Flight from Israel to the State Convention, Followed by a connecting flight to State Convention
.(connection) Another destination
Cut off from the flight ,(connection) 9.1.4 State convention destination flight More
Israel as a convention.
9.2 Payments received for excess baggage weight.
9.3 Payments received for upgrades of tickets.
9.4 Payments received for changing airfare by traveling.
.(cargo) 9.5 Payments received for transporting cargo
9.6 Payments received for transporting animals.
9.7 Payments received for escort services for children.
9.8 Payments received in respect of the provision of personal services such as food, drinks, blankets
Etc.”B provided in flight (Currently, these payments are collected but may be charged
in the future).
11 . In order to manage operations described above, The foreign company will open a bank account in Israel, Which will be deposited
Funds for the services listed above. These funds will be deposited in the bank account in the country to date
Transferred to the foreign company abroad”To. Also, It is expected that the foreign company bank account this role
Amounts required for its current operations branch.
11 . Except for activities specified above, The foreign company does not expect any further activity in Israel.
12 . Revenues above, Produced and will be produced by the Israeli branch of a foreign company will be included and will be reported
State Convention fully tax reports consolidated within the framework of the foreign company so that they
Subject to full tax revenue Convention State Foreign Company (As would apply were produced
Revenues State Convention) And will not respect any exemption and / or deduction and / or credit.
Application:
Determining tax arrangement will apply to the foreign company and its Israeli branch on issues and actions
Described above.
Tax decision and conditions:
1. In accordance with the provisions of Articles 75 And - 71 לפקודת מס-הכנסה (below: “Command”) והוראות
Convention, הכנסות החברה הזרה מפעילות תעופה בינלאומית, כמפורט בסעיף 9 לעיל לחלק
העובדות בהחלטת המיסוי, תהיינה פטורות ממס הכנסה בישראל, למרות קיומו של מוסד
קבע לחברה הזרה בישראל.
2. הכנסות החברה הזרה שניתן לראותן ככרוכות לפעילות תעופה בינלאומית, ואשר לא
נותקו מפעילותה השוטפת, תחשבנה כהכנסות מפעילות תעופה בינלאומית ויחולו גם
עליהן הוראות סעיף 1 לעיל.
3. החברה הזרה תנהל פנקסי חשבונות כנדרש בהתאם להוראות תוספת י”א להוראות מס
. income (Account bookkeeping), The implant”third 1973-
4. החברה הזרה תפתח תיק בפקיד השומה ותגיש דוחות כנדרש בדין החל משנת המס בה
Israel began its operations, And will continue to report wages paid to its employees in Israel case
Its deductions.
5. Every year, the foreign company shall attach tax returns you submit a declaration that the revenues included in that
Derived or generated by the branch originating in the list included under 9 Above some of its employees
Tax decision, While providing a breakdown of revenues that make up the total income.
6. הכנסות נוספות שתפיק החברה הזרה באמצעות הסניף או המיוחסות לסניף, That are
מפעילות תעופה בינלאומית כאמור לעיל, יתחייבו במס בהתאם לדין הנוהג בישראל
והוראות האמנה, ולגביהן תידרש החברה הזרה בהגשת דוח מס מלא כנדרש על פי הדין
Israel.
7. החברה הזרה תדווח לפקיד השומה על כל שינוי בסטאטוס המיסוי או התאגידי שלה, If
יהיה, בתוך 91 ימים ממועד אותו שינוי.
8. The foreign company has undertaken to provide information to the assessing officer, Data or documents in its possession
Pertaining to examine the types of income, Including the method for determining the income from airport
International and method for determining other revenues, If any, Or through the expenditure Determination
Producing income and the Iihosn, As applicable.
9. Tax decision does not regulate the rate of profits and / or income foreign company should
לייחס לפעילותה בישראל ו/או לפעילות המיוחסת לסניף בישראל או את שיטת ייחוס
הרווחים בין הסניף בישראל לבין סניפים אחרים של החברה הזרה בעולם.
11 . במסגרת החלטת המיסוי נקבעו מגבלות ותנאים נוספים