Friday, February 12, 2010

Bar Rafaeli Gets Tax Deal From Israel

Israeli supermodel Bar Rafaeli, who is currently dating Leonardo DiCaprio, has made a deal with the Israeli Tax Authority. She had been hoping to get a full exemption from Israeli taxes because she was no longer living in Israel.

The deal calls for her to pay tax in Israel on 25% of her income up to a certain point, and then receive an income tax exemption if she's outside Israel for more time than when she's in Israel.
The negotiations were conducted between Refaeli's lawyer and the Kfar Sava income tax assessor. At first, Refaeli tried to change her status with the Tax Authority to that of an expatriate.

However, her request was declined because she did not meet the necessary requirements for foreign residency, which include living abroad for more than 183 days a year or 425 days over three years plus proof that her center of life – permanent residence, family, life partner – is abroad.
This is not an uncommon situation either. Nonresident status is often claimed by athletes and wealthy individuals who then have to show proof that they were not in a particular jurisdiction for the required time periods.

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