CFC Rules

Israel's Controlled Foreign Corporation (CFC) rules prevent Israeli residents from deferring tax by holding passive income in low-tax foreign companies. Learn when CFC rules apply, which income types are captured, how the deemed dividend is calculated, available defenses, and reporting obligations for shareholders of foreign companies.

  1. Foreign Controlled Company (CFC) - Definition

    When is a foreign company considered a CFC?

  2. Taxation of CFC profits

    How are the profits of a foreign controlled company taxed?

  3. Exceptions to CFC rules

    When the CFC rules do not apply

  4. CFC reporting obligations

    Report on holding in a foreign company

  5. Tax planning with foreign companies

    Legitimate tax planning against CFC