Income Tax Ordinance Amendment (Investment Funds) Bill
Translated from Hebrew: הצעת חוק לתיקון פקודת מס הכנסה (קרנות השקעה)
TL;DRThe bill provides that profits from investment funds will be subject to capital gains tax, provided certain criteria are met, in order to prevent their use as a tax shelter.
Translated from Hebrew
What does the bill do?
The bill adds a new section to the Income Tax Ordinance defining the conditions under which investment funds will be entitled to the capital gains tax rate. A qualifying investment fund must meet structural requirements (at least ten limited partners, each holding less than 20% of the rights) and management requirements (limited partners are not involved in investment decisions). The bill lists various types of funds that qualify (hedge, crypto, private equity, real estate, credit and infrastructure funds). The share of a general partner (manager) above 4% of the commitments will be taxed at the regular rate, while the share of limited partners will be taxed as capital gains.
The votes on this bill
Coalition 72 seats
Opposition 48 seats
Tap an MK for detailsChanged position between readingsOnly MKs who held a seat on the day of the vote are shown