Foreign Controlled Company (CFC) - Definition

Definition

CFC: A foreign company controlled by Israeli residents (50%+ ownership) and most of its income is passive (interest, dividend, royalties, rent).

Conditions

  • Israeli control 50%+
  • Passive income 50%+
  • Effective tax lower than 15%

Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.