Minister of Finance Signed the Petroleum Profit Taxation Regulations
Minister of Finance Dr. Yuval Steinitz signed the Petroleum Profit Taxation Regulations (Advance Payments in respect to the Levy for the Year 2013), (Temporary Order), 5773-2013, which set the rate of advance payments due to the levy that must be paid under the Petroleum Profit Taxation Law, 5771-2011, which implemented the recommendations of the Sheshinski Committee.
The law, which entered into effect in April 2011, stipulated that the owner of an oil right in an oil project must pay a levy at the rates prescribed by law, and empowered the Minister of Finance to promulgate regulations in the matter of advance payments in respect to the levy.
In accordance with the regulations, the owner of an oil right who is obligated to pay the levy under the law will pay advances on account of the levy for the year in question. The regulations will enter into effect upon their publication, which means that the advance payment in respect to the levy that must be paid in 2013 will be made as of February 15, 2013.
The rate of the advances has been set at 21%, on the basis of an examination by the professional staff at the Israel Tax Authority, which examined the relevant data for setting the advances.
Minister of Finance Dr. Yuval Steinitz said that: “Following implementation of the conclusions of the Sheshinski Committee, which was established on my initiative, these regulations guarantee the public’s share of Israel’s natural resources on an ongoing basis and will increase the State’s revenues from gas profits.”
Source: Israel Ministry of Finance
