It’s the second diamond-related tax agreement this year
On Dec. 18, the Israeli Diamond Exchange and Israel Diamond Manufacturers Association ratified a new agreement with the country’s tax authorities.
The new tax agreement follows 10 months of negotiations and sets out terms for the industry in line with international financial regulations.
The new regime no longer taxes diamantaires on turnover in years when they incur losses. They can also now deduct expenses from their income.
“This is an historic achievement that will enable us to concentrate on growing the diamond industry,” said IDE president Yoram Dvash in a statement. “Over the past several months we worked in cooperation with the [Israeli] Tax Authority in total transparency. Our goal is to manage our books and to pay taxes like every other business in Israel.”
Dvash added that he hopes the agreement will lead to an easing in bank credit.
World Federation of Diamond Bourses president Ernie Blom hailed the new agreement, which he said was only possible because “the diamond trade was totally open in its approach to negotiations.”
He noted this agreement follows a new industry-negotiated tax regime for Belgium, the so-called Carat Tax.