Income Tax Ordinance Amendment (No. 285) Bill

What does the bill do?

The bill adds a new category of "real estate under construction" to the definitions in tax law, allowing income-producing real estate investment funds to hold up to 20% of their asset value in real estate whose construction has not yet been completed, provided there is a plan for it that allows it to become income-producing real estate. This bill includes expanding the permitted income from properties under construction (such as renting advertising space), setting periods for completing construction with an option to extend by up to three years (or seven years for projects of 250+ housing units), and determining that a sale of real estate within four years of the start of leasing will be considered exceptional income. It also applies to real estate purchased before the law's publication, if the construction period has not yet passed.