The Israeli Petroleum Profit Taxation Regulations

Oil right|Levy|Law


Dr. Avi Nov, Adv.


Febuary 2013


The Israeli Petroleum Profit Taxation Regulations (Advance Payments in respect to the Levy for the Year 2013), (Temporary Order), 5773-2013 (hereinafter - The Israeli Petroleum Profit Taxation Regulations) came into force.

The Israeli Petroleum Profit Taxation Regulations set the rate of advance payments due to the levy that must be paid under the Israeli Petroleum Profit Taxation Law, 5771-2011 (hereinafter - The Israeli Petroleum Profit Taxation Law), which implemented the recommendations of the Sheshinski Committee.

The Israeli Petroleum Profit Taxation Law, which entered into effect in April 2011, orders that the owner of an Israeli oil right in an oil project must pay a levy at the rates prescribed by law, and empowered the Israeli Minister of Finance to promulgate regulations in the matter of advance payments in respect to the levy.

In accordance with the Israeli Petroleum Profit Taxation Regulations, the owner of an oil right who is obligated to pay the levy under the law will pay advances on account of the levy for the year in question. The Israeli Petroleum Profit Taxation Regulations will enter into effect upon their publication, which means that the advance payment in respect to the levy that must be paid in 2013 will be made as of February 15, 2013.

The rate of the advances has been set at 21%, on the basis of an examination by the professional staff at the Israel Tax Authority, which examined the relevant data for setting the advances.

For information on the Israeli tax system, see: Israeli Tax News
 
Dr. Avi Nov Law Offices, Israeli & international tax law 
*This article is intended for informative purposes only and is in no way to be construed as tax advice or a legal opinion
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