Real estate taxation · Implementation Instruction
Real Estate Taxation Implementation Instruction No. 02/2013: Taxation of a Purchasing Group
Summary
The implementation instruction sets out the procedure for handling betterment tax and purchase tax in purchasing group transactions, following an amendment to the Law that defined "purchasing group", "organising entity" and "contractual framework". A member of a purchasing group is liable to purchase tax according to the sale value of the built property and not of the land, and the seller of the land to the group is liable to VAT, so that a betterment tax clearance for registration will be given only with the VAT Director's confirmation of payment of the tax or a guarantee. The instruction details the tests for identifying a purchasing group, the manner of determining the sale value and the taxation of the organising entity.
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
- Implementation Instruction
- Number
- 2/2013
- Publication date
- 6.6.2013
- Topics
- Purchase tax, Reporting and procedures
- Sections of the Law mentioned
- 46
Related publications
Official document
Source: The publication on the Israel Tax Authority website (gov.il, Hebrew)
Suggested citation
Israel Tax Authority, Implementation Instruction 2/2013, "Real Estate Taxation Implementation Instruction No. 02/2013: Taxation of a Purchasing Group" (6.6.2013) [Hebrew]
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