In many countries the tax rules are personal and not territorial. That is why U.S. citizens are required to pay income tax on their income from anywhere in the world, and not just on income earned in the US.

 

In order to prevent double taxation from people who are citizens of one country but live in another, many countries have signed tax treaties between them, in order to allow their citizens to live and work in other countries without having to pay income tax twice.

 

Israel and the United States also have a tax treaty.

 

The rationale behind the tax treaty is that if you pay a higher tax rate for your income in the country in which you live in, in comparison to the country where you hold a citizenship, then you're exempt from paying additional taxes to the state of origin. However, and if you live in a country where tax rates are lower than the tax rates in your state of origin, you pay the difference.

 

 

According to the U.S - ISRAEL tax treaty, U.S. citizens who live in Israel are exempt from tax on earned income (from work) up to the amount of $95,100.

As for passive income or business income, the taxpayer should examine the tax liability for each case on its merits.

 

Due to the treaty, the vast majority of American citizens living in Israel do not have a U.S. taxable income, but most of them must submit tax reports to the IRS for each tax year.

 

Failure to file tax reports with the IRS by a U.S. citizen living outside the U.S. may result in penalties and fines.

 

 

The benefits of our tax services

 

Time saving - Smartax submits the tax reports for its clients electronically (e-file), so that our customers get the fastest and most accurate tax return service, and can be updated regularly on the status of their expected refunds.

 

Professionalism - your tax reports will be prepared by professionals with whom you can consult and who will be available for any proceeding you may need.

 

Attractive prices - please contact us so that you can see for yourself that the price we offer is very reasonable.