Tax authorities seek to clarify the treatment of intercompany loans
April 01, 2009
The Israeli tax authorities have proposed the clarification of the tax treatment of intercompany loans
The proposal states that capital notes should be treated as equity from a tax perspective when issued by a foreign company to an Israeli affiliate. Capital notes are fixed income products issued by companies as a source of short-term debt. As a new Israeli government is being sworn in today, it remains to be seen how quickly this announcement will become law.
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