חוק לתיקון פקודת מס הכנסה (תיקון מס' 261), התשפ"ב-2022Law for the Amendment of the Income Tax Ordinance (Amendment No. 261), 2022 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The purpose of the Law is to update the documentation and reporting obligations that apply to taxpayers belonging to a multinational group - a group composed of two or more entities, at least one of which is a foreign resident, and between which special relations exist - in accordance with the applicable international regulation on the matter. The Law authorizes the Minister of Finance to establish provisions regarding the registration and documentation of an entity belonging to a multinational group. The Law applies the reporting obligations to reports that must be submitted for the 2022 tax year onward, however an entity may also submit a report under the Law for the 2021 tax year. The Law was enacted against the background of the increasing ability of multinational groups to exploit tax rates in different countries in order to set transaction prices and terms in a manner that results in payment of the minimum tax, and against the background of the international regulation establishing documentation and reporting rules.

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