Tax Representative for Israeli Companies

Tax Representative for Israeli Companies

One of the requirements to start business activity within Israel is registering the company with the tax authorities.

But the main requirement for tax registration is the appointment of a local tax representative for the company. This representative serves as the sole point of contact with the Israeli tax authorities and is responsible for ensuring the company complies with its tax obligations. This requirement applies to all companies, whether owned by locals or foreigners. However, in the case of foreign ownership, appointing a local tax representative is mandatory.

This representative acts as the connection between the company and the Israeli tax authorities. At present, it is not possible to do tax registration without having a local tax representative in place.

In other words, appointing a local tax representative is mandatory. It’s important to understand that this person is not necessarily an accountant, but someone who accepts personal responsibility for your Israeli company's tax obligations.

Personal liability
This representative assumes personal liability for the company’s tax matters in Israel. The tax authorities view a fiscal representative as the local agent of a foreign company and hold them responsible for the correct management and reporting of VAT for the company, in accordance with local regulations.

Section 60 of the Israeli VAT Law deals with the appointment of a representative by foreign residents conducting business in Israel. According to this section, a company must notify the VAT director within 30 days from the start of its business activity in Israel of the name of its local representative. The representative may be either an individual permanently residing in Israel or a corporation registered in Israel.

This means that if the Israeli company fails to pay its taxes or submit required tax filings, it is the representative—not the company’s owners—who may face penalties and potential investigation by the enforcement authorities.

Because of this significant personal risk, very few professional tax service providers in Israel are willing to take on the role of tax representative for companies in which they have no ownership stake. As a result, only a small number of professionals in Israel are both willing and qualified to serve effectively in this capacity. Fortunately, we collaborate with some of the most experienced tax advisors in Israel, who are offering local tax representative services, at fair and competitive rates.

Section 68B of the Income Tax Ordinance states that a company held by a foreign resident must also appoint a representative for income tax purposes. This representative will be authorized to file reports to the tax authorities, receive income and profits on behalf of the foreign resident, and handle any other legal matters required in Israel. the VAT local representatiev can be also a representative for income tax purposes.

Our Office
VAT representation in Israel is a service provided to foreign residents by our office. Our firm offers a convenient local tax represetatives in Israel, in full accordance with all requirements of the Israeli tax authorities. Our representatives will be responsible for the correct management and regulation of VAT for international companies, in line with local laws.

Question: How much does it cost to receive local tex representative services?
Answer: Click here to contact us and get an up-to-date quote for free!