Soon, the Knesset will discuss the arrangements law, which will include an initiative from the Tax Authority to impose tax from the first shekel on rental income, while abolishing the current exemption ceiling. Additionally, a "registry of rented apartments" is planned, where owners will be required to report their rentals. The Tax Authority claims that these moves aim to close loopholes in the rental market, where many funds operate under the radar. The Ministry of Finance plans to ease the burden on real estate investors by reducing the purchase tax, to balance the impact of the new taxation. However, there are disagreements within the three-member committee, and the proposal to lower the purchase tax does not receive broad support. Currently, there is a ceiling for tax exemption on rental income, but this has been frozen for three years, which could lead to landlords exceeding the ceiling being required to report and pay tax. The Tax Authority estimates that state revenues from this tax could reach billions annually, and the move is seen as an attempt to combat black money in the real estate market.
The measure that will cost homeowners and the compensations being prepared at the Ministry of Finance
Source Globes
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