Real estate taxation · Implementation Instruction
Chapter Five 5: Exemption on the Sale of a Right in Real Estate Whose Consideration Is Affected by Building Rights under TAMA 38: 10/2009
Summary
As at the date of its publication (2009), the Instruction explains Chapter Five 5 of the Real Estate Taxation Law, added by Amendment No. 62, under which the sale of building rights by virtue of TAMA 38 is exempt from betterment tax and from sale tax (section 49LC) if the consideration was given in construction services under the reinforcement plan and the building was actually reinforced. The exemption does not apply to real estate that is business inventory, and on a sale of rights also by virtue of other plans the exemption is granted only for the TAMA portion; changes in the attachments of the common property among the residents for the purpose of carrying out the TAMA, without monetary consideration, are exempt from betterment tax and purchase tax (section 49LD). According to the Instruction, the exemption applies to transactions from 18 May 2005 to 31 December 2016; at the first stage taxable assessments are issued whose collection is frozen, and the exemption is granted only after completion of the reinforcement on the basis of Form 4 or approval of the local committee.
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
- 10/2009
- Publication date
- 23.11.2009
- Topics
- Urban renewal, Betterment tax
- Sections of the Law mentioned
- 49ז 31ב 11וא 49 51את
Official document
Source: The publication on the Israel Tax Authority website (gov.il, Hebrew)
Suggested citation
Israel Tax Authority, Implementation Instruction 10/2009, "Chapter Five 5: Exemption on the Sale of a Right in Real Estate Whose Consideration Is Affected by Building Rights under TAMA 38: 10/2009" (23.11.2009) [Hebrew]
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