The tax exemption on capital gains from investment provident funds (kupot gemel le-hashka'a) will be capped at NIS 200,000, according to an Israeli media report. The change limits the existing full exemption for Israeli-resident investors.
An Israeli media report indicates that the Ministry of Finance plans to limit the capital gains tax exemption on investment provident funds (kupot gemel le-hashka'a) to an annual cap of NIS 200,000. Currently, these funds enjoy a full exemption on capital gains for Israeli residents, making them a popular tax-efficient investment vehicle. The proposed change would require investors to pay tax on any gains exceeding the threshold. The report did not specify a timeline for implementation or whether the cap applies per fund or per individual. Further details are expected from official Treasury announcements.
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