Payroll Tax Summaries for Selected Countries Relief from double taxes Ireland has both an income tax treaty (see Appendix A, page A-35) and a totalization agreement (see Appendix B, page B-25) with the U.S. ISRAEL ISRAEL Basis for tax Residents and nonresidents are subject to tax on Israel-source income (income accrued, derived or received in Israel). Residents are also taxed on overseas income derived from a profession generally conducted in Israel, even if the person is an employee in Israel and self-employed abroad, or vice versa. Expatriates under a B-1 visa for a set time period are generally not treated as residents for tax purposes. Residence rules Residency is generally determined by an individual's personal, economic, and family circumstances over several years. The number of days an individual spends in Israel also affects residency. An individual will be considered a resident if he or she: * spends 183 days or more in Israel in a tax year, or * spends 30 or more days in Israel in the current tax year and a total of 425 days or more in the current tax year and the two previous tax years (on aggregate). Taxable employment income Taxable employment income broadly includes salary and all cash and non-cash benefits and allowances. Benefits provided on a net-of-tax basis must be grossed up. Taxable fringe benefits in a typical expatriate compensation package include: * employer-provided cars; * reimbursement of unsubstantiated moving expenses; * cash home leave allowances; * tuition reimbursement for children; * cost of living allowances; * reimbursement of taxes paid; * housing allowances and employer-provided housing; * employer provided domestic workers; * low- or no-interest loans; C-29