TN 8 (05-95)

A. DEFINITIONS

1. Israel

For tax treaty purposes, Israel is Israel as it existed prior to the 1967 war. It does NOT include the West Bank, Gaza Strip, Golan Heights or East Jerusalem.

NOTE: Areas outside Israel can generally be identified by the address which may contain the terms such as: “West Bank,” “East Jerusalem,” “via Israel,” “Ramallah,” or “Ramallah District.”

2. Resident of Israel

A resident of Israel is any person who is:

• resident in Israel for the purposes of Israeli tax; or

• an Israeli citizen and on whom taxes are imposed by Israel pursuant to the Income Tax Ordinance on income from sources outside Israel.

B. POLICY

Assume a person living in Israel (as defined in A.1. above) is an Israeli resident if the conditions in GN 05010.080A. are met.

Do NOT assume that an individual living outside Israel, including the West Bank, Gaza Strip, Golan Heights and East Jerusalem is a resident of Israel.

To be a resident, an individual not living in Israel must be an Israeli citizen and must actually have income from sources outside Israel on which he /she is taxed by the Israeli tax authorities. It is not sufficient that the individual would pay taxes if he/she had such income or had income of a certain level.

C. PROCEDURE

If an individual living outside Israel claims Israeli residence, get evidence that he/she:

• is an Israeli citizen; and

• has income from sources outside Israel which is taxed by the Israeli tax authorities.