The IRS has published for public consultation a draft circular that recognizes the owners of 10 and more apartments for rent, businesses with the appropriate tax.
According to the draft, renting five or fewer apartments will be considered passive income and taxed at the rate of 10% (over 5 thousand shekels).
6-9 owners of rental apartments will be checked by additional parameters in order to determine whether they are businesses. The owners of the 10 flats or more will be considered businesses and be subject to a tax equal to 50% of income.
According to the office, 401 Israelite owns 10 apartments or more, and 2.603 person – 6 to 9 apartments.