After years of failed attempts to reduce generous tax benefits on advanced training boxes, it seems that the Ministry of Finance has found a new way to develop this goal. The Ministry seeks to subject advanced training funds to the planned rules of reform designed to reduce the gaps between the various savings programs, which were originally aimed at equaling the circumstances and benefits between only three programs: investment funds; Savings policies; And investment funds.
Their name indicates that advanced training boxes are a way to finance training within work, but in reality they simply turned into tax exempt provision.
In the coming months, the Ministry of Finance and Finance team is scheduled to publish its final recommendations for the plan. Capital, insurance and savings markets, and the organizer who supervises advanced training funds, opposes reform reform in general, especially the inclusion of advanced training funds in it, on the basis that this was not part of the team’s mandate.
Sources in the Ministry of Finance participating in the team’s work believe that it is still too early to know the training that advanced training funds will be entered into the reform recommendations. The main question is whether the tax exemption ceiling for advanced training boxes will be set, similar to what is planned to save in investment funds in the context of the equivalent of conditions for different products. There will be a less severe option that includes the inclusion of advanced training boxes in the new platform that will be prepared for marketing and managing various tools “under one roof”, separately from unifying tax conditions, as is probably the case in the case of pension boxes.
The Ministry of Finance has currently started preparing the 2026 budget. It is possible that the dramatic reform in the savings market is the main reform in the budget economic arrangements law, after the scarcity of reforms in the previous budgets. It contains benefits for the public as well as decrees, as well as a welcome simplification of breaches who are currently vibrant through taxes and organizational maze of the world of savings. But if the Ministry of Finance provides great success to the advanced training boxes from the back door, it will be a completely different type of reform.
Histadrut (the General Union of Labor in Israel) is already preparing to fight the advanced training funds in the context of the budget, which ended in previous years in the Works Organization’s victory. In a letter to Finance Minister Paisalel Soutrich, the head of the Husadrot, Arnon Bar David, warned of “the terrible departure of concepts with the Husadrots on the Economic Arrangements Law, among other things related to imposing taxes on advanced training funds.” Regarding the 2025 budget, the two sides agreed to remove the planned strike to advanced training boxes and other austerity measures, in exchange for a temporary reduction in public sector wages.
The temporary recommendations of the team responsible for reform were published two months ago. They contained a mysterious signal to advanced training boxes: “The team realized that although, in the appointment letter, this was asked to examine three tools for short and medium -term savings, there are additional tools that serve the same purpose of customers, including advanced training boxes, which were also evaluated in the money that was evaluated in relation to machines.
In response to the report, the Ministry of Finance said: “The team to reduce the argument in investment tools for short and medium savings continues to work chaired by the Director General of the Ministry of Finance Ilan Rom.
It was published by Globes, Israel Business News – En.globes.co.il – on April 28, 2025.
© Copy Publish Publisher Itonut (1983) Ltd. , 2025.
The post Treasury tries new tactic on advanced training funds tax breaks first appeared on Investorempires.com.
