New draft bill to implement Pillar Two rules in Israel
The Israeli Ministry of Finance published on October 5, 2025, a draft bill to implement the principles of the OECD’s Pillar Two. The Israeli Government is accepting public comments on this draft bill until October 26, 2025. The Pillar Two rules, which were adopted by the OECD as part of the BEPS project, are intended […]
Herzog Patents in collaboration with CDS-LUTHI: A Strategic Partnership for Innovation
We are very pleased and proud to announce that as of today, the CDS-LUTHI Group is joining with Herzog to form a new brand – Herzog Patents. The two arms of the CDS-LUTHI Group will continue to operate as collaborative, independent legal entities, while taking over all of Herzog’s patent attorney work and patent litigation. […]
New Voluntary Disclosure Procedure in Israel
On August 25, 2025, the Israeli Tax Authority published a new “Voluntary Disclosure Procedure” effective until August 31, 2026 (hereinafter: “the Procedure”). The Procedure allows taxpayers to report to the Tax Authority income that was not timely and duly reported, without facing criminal proceedings. The Procedure applies to both income taxes, indirect taxes, excise duties, […]
Did You Know? The Upcoming Holiday Season – Time to Plan Ahead
As we approach the holiday season in Israel, we are pleased to present our Third Quarterly Update for 2025. This update offers practical, high-level guidance to help you navigate the festive period from an employment law perspective. Entitlement to Public Holidays in Israel: Israel officially recognizes nine public holidays, most of which are religious in […]
White Paper: Choosing Between a Delaware Public Benefit Corporation and a Traditional C-Corporation Structure for Generative AI Start-Ups
Introduction Selecting the corporate form is one of the most consequential early decisions a start-up’s founder will make. Entity choice reverberates through every subsequent financing, product launch, and exit event. Following an inspiring discussion with Itay Yona and Shay Yahal of the new venture – Mentaleap – in which we were inspired to learn about […]
New VAT Judgment: Bank’s Insurance Agency Can be Classified as a “Financial Institution”
On August 7, 2025, the Jerusalem District Court (Hon. Judge Avigdor Dorot) issued a judgment on an appeal filed by Ir Shalem, the insurance agency of the Bank of Jerusalem, against the refusal of the VAT Authority to change its VAT classification from “Registered Dealer” to “Financial Institution”, consistent with the Bank’s classification. The court […]
Israel’s AI-Cyber Frontier Report
In recent years, artificial intelligence has fundamentally transformed the world of cybersecurity — reshaping both threats and defense capabilities. A new report we published in collaboration with Deloitte Catalyst, Glilot Capital Partners, and AI21 Labs maps for the first time the emerging AI Cyber landscape in Israel. The report examines the driving forces behind the […]
U.S. Customs Tariffs
We would like to update you on the new Executive Orders signed by the President of the United States, Donald Trump, concerning the increase of tariff rates and stricter enforcement measures on the importation of goods into the United States. In light of these changes, on September 3, 2025, at 14:00, we will hold a […]
Unpaid Leave for Employees Absent from Work During the War with Iran
Further to our update on July 2, 2025, regarding the memorandum of law outlining potential unemployment benefits for employees absent from work due to the Home Front Command’s directives during the war with Iran, we wish to inform you that the legislative process has now been completed. On July 21, 2025, the proposed outline was […]
Draft Position Paper by the Privacy Protection Authority Regarding the Appointment of DPO
On July 23, 2025, the Privacy Protection Authority (the “PPA“) published a draft position paper for public consultation regarding the appointment of a Data Protection Officer (DPO) (the “Officer” and the “Draft,” respectively). This requirement was introduced as part of Amendment No. 13 to the Privacy Protection Law, 1981 (the “Law“), which is set to […]
Operation “Am Kalvi” – Compensation Scheme for Indirect Damages to Businesses
We would like to inform you that on July 21, 2025, the Knesset approved the Economic Assistance Plan Law (Temporary Provision – Iron Swords), 2025 (hereinafter: the “Law“) (click here to read the approved Law). The compensation framework is similar to the one implemented following the ‘Iron Swords’ war, such that businesses that suffered significant […]
Draft Order: Purchase Tax Reduction on Vehicles Imported by Indirect Importers
We would like to bring to your attention that the Ministry of Finance has published a draft order to amend the Customs Tariff and Exemptions and Purchase Tax on Goods Order, 2017 (hereinafter: the “Draft Order“) – Click here to read the Draft Order. The draft is open for public comments until August 6, 2025. […]
AI Training and Fair Use: US Federal Court Delivers a Landmark Ruling in Bartz v. Anthropic
Background In a closely watched case that could significantly impact the artificial intelligence industry, the US District Court for the Northern District of California recently ruled on copyright infringement claims against Anthropic PBC, the company behind the Claude AI system. The case involved allegations that Anthropic violated copyright law by using millions of books to […]
The Broker-Dealer Reform Moves Forward
On July 9, 2025, a Bill for the Regulation of the Engagement in Securities Trading Services, 2025 (the “Bill“) was submitted to the Knesset, following the publication of a memorandum for public comments in October 2024 (the “Memorandum“). The Bill is intended to establish, for the first time, a regulatory framework for the provision of […]
Age, Gender, and Discrimination – Examining Continued Employment Beyond Mandatory Retirement Age
We would like to update you on a significant recent ruling by the National Labour Court, which addressed the obligations of employers when requiring employees to retire upon reaching the mandatory retirement age. The court held that, beyond considering whether to continue employing an individual past mandatory retirement age, employers may, in many cases, be […]
Amendment to the Definition of an Individual’s Tax Residency
Dear Clients, Colleagues and Friends, On July 2, 2025, the Israeli Ministry of Finance published a draft bill proposing significant changes to the definition of an individual’s tax residency. Currently, residency is determined by a qualitative “Center of Life Test” that considers personal, economic, and social ties, along with presumptions based on the number of […]
War and the Workplace- A Proposed Outline on Unpaid Leave and Updates for Private and Public Sector Employees
Following our previous updates regarding the recent conflict with Iran and its impact on workplaces, we would like to inform you that a memorandum of law has been published. If passed into legislation, it will authorize the payment of unemployment benefits to employees who were absent from work due to directives issued by the Home […]
Operation “Am Kalvi” – Compensation Scheme for Indirect Damages to Businesses
Further to the client update we published on June 26, 2025 (click here), we would like to inform you that, in accordance with the Ministry of Finance’s proposed scheme for compensating businesses for indirect damages (click here to view the presentation), a Memorandum of Law for the Financial Assistance Program (Temporary Order – Operation “Am […]
The Fate of the Green Claims Directive Remains Unclear – but the Risks of Greenwashing Are Not
Last week the European Commission formally announced its intention to withdraw the Green Claims Directive (GCD) proposal — a key component of the EU’s anti-greenwashing framework. However, conflicting statements since then underscore the uncertainty surrounding whether the withdrawal will become final, or if a revised version of the proposed directive may still emerge. As of […]
Switzerland and Norway Sign Landmark Strategic Article 6.2 Agreement on Carbon Removals, with significant implications for Israel
This week, Switzerland and Norway signed a bilateral agreement under Article 6.2 of the Paris Agreement — and while its initial scope is modest, its strategic signaling power is anything but. This is the first agreement between two industrialized countries to govern the mutual transfer of mitigation outcomes (ITMOs) relating to carbon dioxide removal (CDR) […]
Join us on 9th July for a webinar hosted by Herzog Law and BeZero Carbon
With global carbon markets slated for exponential growth and the recent rise in advance project investments and offtakes, increased attention is being focused on the legal treatment of carbon credits. That’s why BeZero Carbon is partnering with Herzog Law to host a live webinar, “De-risking carbon markets: Managing legal uncertainty in the treatment of carbon […]
Global Fund Managers Time to Rethink Your Strategy in Israel
Under Israeli law, any offering of financial products to investors in Israel requires the publication of a prospectus approved by the Israel Securities Authority (“ISA”). However, there are several exceptions to this requirement, one of which is the private placement exemption. This exemption allows offerings to a limited number of offerees (35) within a rolling […]
War and the Workplace – Further Updates
We are continuing to monitor the evolving security situation and wish to update you on its implications for workplace operations, including the current Home Front Command’s guidelines. As per the latest update, the current Home Front Command guidelines remain in effect until Tuesday evening, June 24, 2025 at 20:00, and permit operations at workplaces defined […]
Government Compensation for Damages: Operation “Am KeLavi” – Legal Updates
Following “Operation Am KeLavi”, significant damage has been caused to private and commercial properties across various regions of the country. In accordance with the Property Tax and Compensation Fund Law, 1961, individuals affected by direct damages may be eligible to receive compensation from the Israel Tax Authority, subject to the limitations set forth in the […]
War and the Workplace – Further Updates
As part of our ongoing updates on the evolving security situation and its impact on workplaces, we would like to share several important developments. These developments include recent regulatory and operational changes affecting workplace activity, employee rights, and visa statuses. Specifically, we cover a new general permit for overtime work, updated Home Front Command defense […]
Operation Rising Lion: Update Regarding War and the Workplace
We are facing challenging days, and we hope that you and your families are keeping yourselves safe. In the wake of armed conflict with Iran, and following the declaration of a special state of emergency throughout the country, the Minister of Labor issued an order regarding the application of Chapter 4 of the Emergency Employment […]
New Guidance from the ISA on Mass Marketing of Funds – Speak More, Say Less
On May 12, 2025, the Israel Securities Authority (the “ISA”) published a staff-position, confirming that fund managers may make “General Publications”, without triggering registration requirements. The ISA’s position outlines the conditions for making “general publications”, and introduces its most restrictive interpretation to date regarding the permissible content, explicitly excluding types of information that had previously […]
Registration now open: second cohort of “The New Currency: Entering the Carbon Market”
Registration is now open for the second cohort of the course “The New Currency: Entering the Carbon Market”, hosted by Ayana in collaboration with EY. Commencing May 21, 2025, this course is designed to equip a diverse range of stakeholders—buyers, sellers, and industry professionals—with a comprehensive understanding of carbon market mechanisms and regulatory frameworks, and […]
Announcing Herzog Fox & Neeman participation in the Carbon Data Open Protocol
We are thrilled to share that Herzog Fox & Neeman has joined the Carbon Data Open Protocol (CDOP) – a collaborative initiative uniting over 30 leading organizations to develop and harmonize carbon credit data across markets. In this endeavor we will be joining leading global carbon market experts and organizations including Sylvera, S&P Global Commodity […]
Section 102 Annual Report – Postponed Filing Date for 2024 Report
We are pleased to update that after extensive discussions with the Israel Tax Authority, the Israel Tax Authority published yesterday (28 April 2025) a formal guidance letter confirming that the filing date for the 2024 annual report has been extended to October 1, 2025. As you may recall and as previously reported, on January 1, […]