Navigating the complexities of tax laws related to trusts can be challenging. Trusts, while not independent legal entities, are recognized as tax-subject entities, including the allocation of a registration number, similar to other tax-liable entities.

A central aspect to consider is the domicile of the trust. This status, which can be Israeli or foreign, is mainly determined by the domicile of the creator and the beneficiaries.

However, the domicile status of a trust is not static and can change due to various factors, such as changes in beneficiaries or the domicile of the creator or beneficiary. Such changes can significantly affect the tax obligations and rights of the trust.

At our office, we examine each case individually and provide clear and practical advice to help you understand the various tax regulations. Our goal is to ensure that trusts comply with the provisions set in the Income Tax Ordinance, considering the potential for domicile changes and other relevant factors. We believe in a forward-looking approach in such cases, and that proper planning can prevent many future problems.