Real estate taxation · Position Paper
Professional Position Paper No. 04/2024, Israel Tax Authority, in the Field of: the Real Estate Taxation Law, on: Regulation 2(1A) of the Purchase Tax Regulations
Summary
The Position Paper deals with Regulation 2(1A) of the Purchase Tax Regulations, under which the purchaser will be refunded 1/6 of the purchase tax paid at the rate of 6%, if a permit to build at least one residential apartment was obtained no later than the end of 24 months from the date of sale. According to the position, an excavation and shoring permit for a residential building will be deemed a building permit for the purposes of the regulation, but only subject to cumulative conditions: a large-scale project of planning complexity, land purchased in a tender with binding timetables, an application for the main permit filed within the deadline and within a reasonable time, a splitting of the permit by decision of the local committee, and works commencing immediately and carried out continuously. This does not extend the deadline in the regulation, and the position is an exception that will be granted only in special cases.
The summary was written by the office and reflects the instruction as of its publication date. The binding text is the official Hebrew publication, and the instruction may have been updated or affected by later legislation and case law. The English title and summary are an unofficial translation.
Publication details
- Type
- Position Paper
- Publication date
- 31.10.2024
- Topics
- Purchase tax
- Sections of the Law mentioned
- 103א
Official document
Source: The publication on the Israel Tax Authority website (gov.il, Hebrew)
Suggested citation
Israel Tax Authority, Position Paper, "Professional Position Paper No. 04/2024, Israel Tax Authority, in the Field of: the Real Estate Taxation Law, on: Regulation 2(1A) of the Purchase Tax Regulations" (31.10.2024) [Hebrew]
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