preface

8.3.4. Sale of Stocks
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TAXATION
8.3.4.1. Taxation of Capital Gains on the Sale of Shares
Individuals are liable to tax on such sales at a rate not exceeding
20% for non-significant individuals shareholders, and not
exceeding 25% for significant individuals shareholders (a
significant shareholder is someone who holds, alone or jointly
with another, 10% and over controlling interest in the company).
The corporate capital gains tax is the company's tax rate (24% in
2011).
8.3.4.2. Taxation of Capital Gains on the Sale of Securities Traded
on a Stock Exchange in Israel
Individuals are liable to tax on such sale at a rate not exceeding
15% (for unlinked instruments) and 20% (for linked
instruments) for non-significant individuals shareholders. For
significant individual shareholders, the tax rate is between 20%
(for unlinked instruments) and 25% (for linked instruments).
The corporate capital gains tax is the company's tax rate (24% in
2011).
8.3.4.3. Financing Expenses
Tax rates below 25% will remain in effect as long as financing
expenses are not claimed. Where such expenses are claimed, the
tax rate will be 25%.
8.3.5. Setting-off Losses Outside Israel
In principle, a loss in passive income originating outside Israel may be
set-off against passive income outside Israel, with the balance carried
forward to future years. A foreign business loss may be set-off against
business income abroad and, in certain cases, it may be possible to setoff
such a foreign loss against business income originating in Israel.
8.3.6. Capital Losses
Capital losses may be set-off against real capital and land betterment
gains.
BDO Israel