The date of payment of land appreciation tax is 15 days after the issue of the assessment by the Chief Assessing Officer. The amount of the land appreciation tax is calculated according to the purchase day or day of effecting a transaction in a real estate company. If the assessee chooses to submit a self-assessment and to pay tax accordingly, the linkage differentials and interest are calculated beginning 50 days after the tax event. Any person not submitting a tax declaration or being late in payment is subject to a fine. While objections are being raised or appeals lodged relating to the imposition of tax or tax rate, no fine will be imposed as the tax sum is in dispute, but the debt is index-linked and accrues interest.
All tax laws grant exemptions and discounts.
Some assesses are entitled to exemptions and reductions, some tax events are granted exemptions and reductions, and sometimes a combination of the two is available or necessary. There are transfers in property rights that are not regarded as sales or transactions in a real estate company and to which the Land Appreciation Tax Law does not apply, e.g., bequests and the transfer of property in the course of a divorce. There are also sales and real estate company transactions that are exempt from land appreciation tax. This exemption is the most common and important tax haven in Israeli tax law. Every seller and purchaser of a property right and any person carrying out a transaction in a real estate company is obliged to make a declaration thereof within 30 days of the sale date or from the date of carrying out the transaction.