35 The draft bill to reform determining tax residency in Israel is expected to lead to nothing short of a revolution regarding how an individual can be considered an Israel Resident, or alternately a Foreign Resident, for income tax purposes. The Amendment's objective is to minimize the scope of existing disputes regarding an individual's residency, and to set forth irrefutable presumptions based on the number of days an individual spent inside and outside of Israel, in order to decide the resulting tax liability in Israel. The current status: Today, the legal status prescribes that residency is decided based on the "center of life" test, a qualitative individual test that examines the taxpayer's center of life. Thus, the totality of the taxpayer's personal, familial, and economic ties are examined. For example, the location of their permanent home, where their family members study, whether and where they are active in various organizations or unions, and what and where their financial interests are, are all examined. Congratulations (or maybe not)!!! You are an Israel Resident: A Bill Proposing New Definitions and Presumptions for Establishing Israeli Residency for Taxpayers
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