preface

Example
A
NIS
Example
B
NIS
APPENDIX 1
Example
C
NIS
Example
D
NIS
CAPITAL GAIN (LOSS):
Depreciated balance as of December 31, 2010 100 100 100 100
Proceeds from sale 390 150 130 60
Capital gain (loss) 290 50 30 (40)
INFLATIONARY AMOUNT:
Depreciated balance 100 100 100
× × ×
Increase in CPI as of December 31, 2010 2.9 2.9 2.9
(321.1:110.4) 290 290 290
Less depreciated balance (100) (100) (100)
Adjusted increase 190 190 190
INFLATIONARY TAXABLE AMOUNT:
Depreciated balance 100 100 100
× × ×
Adjustment to December 31, 1993
(143.1:110.4) 1.3 1.3 1.3
130 130 130
Less depreciated balance
Inflationary taxable amount (smaller than
(100) (100) (100)
or equal to capital gain)
EXEMPT INFLATION AMOUNT:
30 30 30
Inflationary amount 190 190
Less inflationary taxable amount (30) (30)
Total exempt inflationary amount 160 160
(*) Taxable and exempt inflationary amount
of capital gain
REAL CAPITAL GAIN:
Capital gain 290
Less inflationary amount (190)
100
REAL CAPITAL GAIN UP TO 31.12.2002:
12/20 x 100 60
REAL CAPITAL GAIN AFTER 31.12.2002:
8/20 x 100 40
TAXES DUE (Personal Tax Liability):
Real capital gain up to 31.12.2002 (60x 45%) 27 - - -
Real capital gain after 31.12.2002 (40 x 20%) 8 - - -
Inflationary taxable amount (30 x 10%) 3 3 3 -
Total taxes due 38 3 3 -
146 BDO Israel