Investment Funds – Israel Tax Structuring & Compliance.

STL’s extensive knowledge of the private fund and venture capital industry in Israel, along with our international tax expertise, enables us to guide clients through every stage of the fund lifecycle. We cover fund formation, including the securing of income tax and VAT rulings; economic arrangements for sponsors; downstream M&A transactions, fund restructurings, and tax planning upon termination.

Services for Investment Funds

Tax Structuring

We advise on the optimal tax structure for the main and parallel funds, addressing the tax implications for institutional investors and providing legal opinions to support exemptions (Section 9(2) of the Israeli Income Tax Ordinance). We also cover the personal tax implications for principals, including those related to carried interest.

Tax Rulings and Opinions

To ensure clarity and compliance, we obtain tax rulings or issue legal opinions that define the tax treatment for fund investors.

Ongoing Tax Advice

Our tax guidance supports funds throughout their lifecycle. We advise on the tax aspects of investment strategies and transactions, handle cross-border tax and withholding tax issues, analyze the implications of distributions and carried interest, design tax-efficient exit strategies, and structure liquidity events for optimal outcomes.