Help is on the Way for U.S. Small Businesses

On Friday afternoon, the latest stimulus package known as the CARES (CoronaVirus Aid Relief and Economic Security) Act was signed into law. Below we have targeted two provisions we believe are directly and most relevant to our startup clients.

Paycheck Protection Program (PPP)


Cash grants are available to companies who retain their current employees at their regular salaries. Some key points: 

  1. Grants are...

Tax Deadline - Important Update

The IRS has finally come through and officially fully extended the tax deadline from April 15, 2020 to July 15, 2020. Their original position as stated in our previous update was to only extend the payment due date. We are grateful to receive some good news during these challenging times.

Cash Flow Stimulus Package

Washington is currently very focused on putting cash and liquidity in the hands of small business owners an...

Our hearts are with you during these challenging times. We are rooting for each and every one of our resilient start-ups to emerge from this crisis even bigger and better than before!

Tax Deadline Updates:

Corporate Filing Deadline for the 2019 Tax Return or 2019 Extension Request remains April 15, 2020.

Payment of any the following:

  • Tax due as reported on the 2019 tax return

  • Tax due as reported on the 2019 extension request

  • Tax due as rep...

September 23, 2019

Tax and Related Issues When Employees Relocate to the U.S.

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We find that the start of the new school year is popular timing for having employees with families relocate to the U.S. Any Israeli corporation considering relocating an employee should be aware that there are certain consequences, tax and otherwise, to:

  • The employee,

  • The U.S. corporation that will be the employer, and

  • The Israeli corporation its...

December 18, 2018

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Nearly all Israeli startups that operate in the US will incorporate in Delaware. For that privilege, each Delaware corporation is required to file and pay an annual franchise tax by March 1, 2019. Unlike the standard income tax calculation, the franchise tax is due whether or not the US company actually has any profits. As a matter of fact, it is often times the companies which are generating significant losses whic...

The WayFair Case. And the Way Ahead, Fair or Not…

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Something monumental has just occurred regarding the expansion of the sales tax net which will now capture many more businesses, including those based in Israel and selling to US clients. Such businesses may need to increase the overall charge for their product to include sales tax as well as carry the burden of collecting and reporting the tax. Additionally, such com...

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When is Sales Tax Relevant?

While the concept of U.S. sales tax is similar to Israeli VAT regulations, the actual implementation and definitions are vastly different. For starters, unlike VAT which falls under one tax jurisdiction in Israel, sales tax in the U.S. is imposed on a state by state basis other than in the four states which do not impose sales tax at all (Delaware, New Hampshire, Montana and...

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The US has endorsed Jerusalem, but their tax reform did not forget Tel Aviv and its startups. Although the new tax reform takes affect primarily in 2018, there are provisions that will already affect your 2017 filings. Here's a summary of how the US is using its tax reform to attract tech companies, what that means for your existing entity and what you should consider when establishing future startups...

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MK Tax Ltd.

mktax@mktaxusa.com

P: 073-794-4200

Jerusalem Central Station
224 Jaffa Road, 7th Floor

Jerusalem, 94383