Print Page
News & Press: International News

Israeli Tax Authority waives deposit requirement for ongoing grant materials

Thursday, 20 March 2014   (0 Comments)
Posted by: Author: Baker & McKenzie
Share |

Author: Baker & McKenzie

Israeli Tax Authority Waives Deposit Requirement for Ongoing Grant  Materials

In separate rulings, the Israeli Tax Authority (the "ITA”) recently granted waivers to Tamir Fishman and ESOP in their roles as trustees of Section 102 supervisory trustee arrangements (e.g., trustee arrangements where the shares are not actually transferred to the Israeli trustee but instead remain with the plan sponsor’s broker) from the requirement to obtain copies of each individual award agreement for which Section 102 trustee-track tax treatment was being sought (the "deposit requirement”).

Pursuant to these rulings, rather than securing copies of each individual award agreement, the trustees can comply with the deposit requirement by obtaining a one-time, hard-copy consent to the trustee arrangement from each grantee in Israel and thereafter, receive broker reports for all subsequent grants.

Subsequent to these rulings, we understand that the ITA has begun to incorporate a similar waiver of the deposit requirement into new supervisory trustee tax rulings.

As a result, companies operating Section 102 supervisory trustee arrangements with Israeli trustees should consult with their Israeli trustee (including those companies using the services of Tamir Fishman and ESOP) 
to determine whether or not the deposit requirement has been waived or still applies to the company’s Section 102 arrangement.

This article first appeared on



Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

  • Tax Practitioner Registration Requirements & FAQ's
  • Rate Our Service

    Membership Management Software Powered by YourMembership  ::  Legal