Law for the Change of National Order of Priorities (Legislative Amendments for Achieving Budget Targets for 2013 and 2014), 5773-2013
חוק לשינוי סדרי עדיפויות לאומיים (תיקוני חקיקה להשגת יעדי התקציב לשנים 2013 ו-2014), תשע"ג-2013
Published: 2013-08-05Last amended 2018-12-27✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Section B: Accounting for Psychiatric Hospitalisation Services
Definitions§
28.
In this Section —
"performance at a fixed price" means the sum of the products of all psychiatric hospitalisation services consumed by members of a sick fund at a psychiatric hospital multiplied by the full price of each such service, even if a reduced amount was paid therefor;
"psychiatric hospital" means a psychiatric hospital or a psychiatric department in a general public hospital, each of which is one of the following:
(1)a governmental hospital, including a health corporation operating within its framework;
(2)a hospital owned by a sick fund;
(3)a hospital owned by a local authority;
(4)a hospital that is a corporation that is a public institution as defined in section 9 of the Income Tax Ordinance [New Version];
(5)a hospital that is not a hospital as stated in paragraphs (1) to (4), in whose registration certificate under the Public Health Ordinance, 1940, emergency medicine positions (triage) are included;
"National Health Insurance Law", "Accounting Law", "Supervision Law", "weighted number of insured persons", "health corporation" and "the Ministers" — as defined in Section A;
"full price" means the maximum price of a psychiatric hospitalisation service, as prescribed by Order under the Supervision Law;
"standardised number of beds", in a psychiatric hospital — the sum of the following two items divided by 365:
(1)the number of inpatient beds or day hospitalisation beds registered in the registration certificate of the psychiatric hospital at the beginning of the year, multiplied by 365;
(2)the number of inpatient beds or day hospitalisation beds planned to be added to the registration certificate of the psychiatric hospital in that year, multiplied by the number of days remaining in that year from the planned date of their addition;
"consumption" or "purchase", of psychiatric hospitalisation services by a sick fund at a psychiatric hospital — including consumption or purchase of such services by a sick fund at a psychiatric hospital that is a corporation owned by the sick fund, and excluding such consumption or purchase at a psychiatric hospital operating within the framework of that same sick fund;
"basic consumption ceiling for hospitalisation services at a psychiatric hospital", in a given year — the sum of the following two items:
(1)the total amount obtained from calculating the full price in that year of a day of psychiatric inpatient care, multiplied by 365 and by 95% of the standardised number of inpatient beds;
(2)the total amount obtained from calculating the full price in that year of a day of psychiatric day hospitalisation, multiplied by 252 and by the standardised number of day hospitalisation beds;
for the purpose of this definition, the full price of a day of psychiatric inpatient care and of a day of psychiatric day hospitalisation shall be calculated according to the type of bed to which it is attributed.
Individual Consumption Ceiling for Psychiatric Hospitalisation Services for the Years 2015 and 2016§
29.
The individual consumption ceiling for hospitalisation services of a sick fund at a psychiatric hospital, in each of the years 2015 and 2016, shall be the amount obtained by multiplying the basic consumption ceiling for hospitalisation services at a psychiatric hospital by the performance at a fixed price of the members of that sick fund at that hospital in 2014, divided by the performance at a fixed price of all members of all sick funds at that hospital in 2014 (in this Section — the individual consumption ceiling for hospitalisation services); the Ministers shall publish in a notice in Reshumot (Official Gazette) the individual consumption ceiling for hospitalisation services of each sick fund at each psychiatric hospital; such a notice shall be published by 1 March of each of the years 2015 and 2016, and in respect of the year of commencement of this Section — by the date of its commencement, whichever is the later.
Payment for Psychiatric Hospitalisation Services§
30.
(a)In each of the years 2015 and 2016, each sick fund shall pay for psychiatric hospitalisation services it purchased at each psychiatric hospital, amounts as set out below:
(1)up to the individual consumption ceiling for hospitalisation services — not more than the full price of the psychiatric hospitalisation services;
(2)beyond the individual consumption ceiling for hospitalisation services and up to a performance at a fixed price of 113% of that ceiling — zero;
(3)beyond a performance at a fixed price of 113% of the individual consumption ceiling for hospitalisation services — not more than 30% of the full price of the psychiatric hospitalisation services.
(b)For the purpose of this section, the hospitalisation services purchased by a sick fund at a psychiatric hospital shall be calculated at their full price.
Accounting between a General Governmental Hospital and Health Corporations§
31.
In a general governmental hospital in which a health corporation operates and which has a psychiatric department, the volume of accounts for which a zero amount or a reduced amount is paid, as stated in section 30(a)(2) or (3), attributed to the health corporation, shall not be less than an amount equal to 95% of all accounts for which a zero amount or a reduced amount is paid as aforesaid.
Agreements regarding the Method of Accounting§
32.
(a)Notwithstanding the provisions of this Section, any psychiatric hospital and any sick fund may determine by a written contract between them an alternative arrangement for accounting in respect of the purchase of psychiatric hospitalisation services, provided that the arrangement fulfils the following conditions:
(1)the hospital and the sick fund shall undertake in the contract that services at an adequate standard and of the quality and availability required under the provisions of the National Health Insurance Law shall be provided at the hospital to members of the sick fund;
(2)the contract shall provide that if a change occurs in the total volume of consumption of services of the sick fund at the hospital, in any year of the arrangement as compared with the year preceding it, beyond the change in the weighted number of insured persons of the sick fund and the rate of change in the full price of the services, at a rate exceeding 6%, the method of accounting between them shall be in accordance with the provisions of this Section;
(3)the contract shall include a mechanism for the resolution of disputes between the parties in relation to the accounting between them;
(4)the period of the contract shall not exceed one and a half years or shall be until the end of the period during which the provisions of this Section apply as stated in section 34(a), whichever is the earlier;
(5)the arrangement in the contract shall not create discrimination on the part of the hospital between different members of the sick fund with which the contract was concluded or between them and members of another sick fund.
(b)Where a psychiatric hospital and a sick fund have reached an arrangement on the method of accounting between them, the parties shall transmit a copy of the contract concluded for that purpose to the Ministers; if one of the Ministers considers that the contract does not comply with the provisions of subsection (a), that Minister shall notify the parties to the contract and the other Minister thereof within 60 days from the day on which the contract was transmitted to that Minister.
(c)The Minister of Health may, in consultation with the Minister of Finance and after hearing the parties to the contract, cancel it if that Minister considers it necessary to do so for the purpose of safeguarding public health, all for reasons that shall be recorded; if the Minister of Health decides to cancel the contract as aforesaid, that Minister shall transmit the decision to the parties together with the reasons therefor.
(d)The Ministers may prescribe by Order provisions regarding the measurement of the actual consumption of a sick fund at a psychiatric hospital in respect of which a contract between the sick fund and the hospital has been concluded under this section, including that consumption shall be deemed to have been made at prices lower than the full price of the services consumed.
Non-Application to Psychiatric Hospitalisation Services§
33.
The provisions of this Section shall not apply to the services enumerated in paragraphs (1) to (5) of section 27(a).
Commencement and Transitional Provisions§
34.
(a)The provisions of this Section shall commence on the commencement date of the National Health Insurance (Amendment of the Second and Third Schedules to the Law) Order, 5772-2012, or on the commencement date of another Order that replaces it, and they shall apply to psychiatric hospitalisation services purchased by a sick fund at a psychiatric hospital from their commencement date until the 2nd of Tevet 5777 (31 December 2016).
(b)In the year in which the commencement date of this Section falls as stated in subsection (a), for the purpose of calculating the standardised number of beds, only days after the commencement date of this Section and until the end of the year shall be counted in paragraphs (1) and (2) of the definition of "standardised number of beds".
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Contact Us →Chapter VII: Taxes
Income Tax — Temporary Provision regarding Section 120b§
41.
Notwithstanding the provisions of section 120b(a) of the Ordinance, on 1 January of the 2014 tax year the income ceilings and the credit point amounts shall not be adjusted; on 1 January 2015, the income ceilings and the credit point amounts as they were on 1 January 2014 shall be adjusted in accordance with the provisions of that section, according to the rate of increase of the index in the 2014 tax year.
Income Tax – Commencement, Application and Transitional Provisions§
42.
(a)The provisions of this Section shall apply to income produced or accrued on the commencement date and thereafter, unless otherwise prescribed in this section.
(b)The commencement of the provisions as detailed below shall be on the 29th of Tevet 5774 (1 January 2014), and they shall apply to income produced or accrued on that date and thereafter:
(1)section 3(c)(1) of the Ordinance, as worded in section 40(1) of this Law;
(2)section 64a5(a)(4)(c) of the Ordinance, as worded in section 40(4) of this Law;
(3)sections 75c to 75r of the Ordinance, as worded in section 40(5) to (18) of this Law;
(4)section 92(a)(4)(b) of the Ordinance, as worded in section 40(19) of this Law;
(5)sections 124b and 126(a) of the Ordinance, as worded in section 40(24) and (25) of this Law.
(c)Notwithstanding the provisions of the opening passage of section 64a(a) of the Ordinance, as worded in section 40(3) of this Law, a company whose members on the eve of the commencement date were family members who are deemed to be one person under section 76(d)(1) of the Ordinance (in this subsection – a family company), but which did not submit a request to the assessing officer by that date, may submit a request to the assessing officer within four months of the commencement date, provided that the conditions in section 64a(a) of the Ordinance, as worded in section 40(3) of this Law, are fulfilled in it; where a family company has submitted such a request, the following provisions shall apply to it:
(1)the family company shall be deemed an eligible family company, commencing from the tax year following the submission of the request;
(2)all surpluses accumulated in the company up to the 28th of Tevet 5774 (31 December 2013) (in this subsection – the termination date) which, had they been distributed as a dividend, would have been liable to tax under section 125b, shall be deemed to have been distributed as a dividend to the shareholders;
(3)the date for payment of the tax shall be no later than the 13th of Tevet 5778 (31 December 2017) (in this subsection – the deferral period), and linkage differentials and interest shall not apply thereto for that period; if the tax has not been paid by the end of the deferral period, linkage differentials and interest, within their meaning in section 159a(a) of the Ordinance, shall apply thereto for the period commencing after the end of the deferral period until the date of actual payment; however, the provisions of this paragraph shall not apply where one of the following obtains, and the member of the company shall be liable to tax as detailed below:
(a)a loan was granted to a member of the company during the deferral period and the member did not repay it within one year of the date of receipt – the member shall be liable to tax in respect of his share of the dividend referred to in paragraph (2), together with linkage differentials and interest from the termination date;
(b)employment income, management fees, consultancy fees, linkage differentials, interest or a dividend were paid to a member of the company that are not from profits accumulated from the 29th of Tevet 5774 (1 January 2014) onwards (in this paragraph – a distribution), and tax was not paid thereon at the time of distribution – the member shall be liable to tax in respect of his share of the dividend referred to in paragraph (2);
(4)where the family company sold assets that were in the company's ownership on the termination date, the taxpayer shall be liable to tax at the rate detailed below:
(a)on the real capital gain multiplied by the ratio between the period from the date of acquisition to the termination date and the period from the date of acquisition to the date of sale (in this paragraph – real capital gain up to the termination date) – tax at the highest rate prescribed in section 121 of the Ordinance;
(b)on the difference between the real capital gain and the real capital gain up to the termination date – tax at the rate prescribed in section 91(b)(1) or (2), as the case may be.
(d)The provisions of section 64a(a)(1) of the Ordinance, as worded in section 40(3) of this Law, shall apply to profits distributed from the income of the family company from the 29th of Tevet 5774 (1 January 2014) onwards.
(e)The provisions of section 64a of the Ordinance, as worded in section 40(3) of this Law, shall also apply to one who was an eligible family company within its meaning in that section on the eve of the commencement date (in this subsection – an existing eligible company), with the following modifications:
(1)section 64a(a)(8) of the Ordinance, as worded in section 40(3) of this Law, shall apply to a foreign resident in respect of profits accumulated from the 29th of Tevet 5774 (1 January 2014), and in respect of a taxpayer who became a resident of Israel for the first time or a veteran returning resident, as referred to in section 14(a) or (c) of the Ordinance, from that date onwards, or who is a resident of Israel for the first time or a veteran returning resident who became a taxpayer from that date onwards;
(2)an existing eligible company in which, before the commencement date, a condition as referred to in section 64a(a1) of the Ordinance as worded on the eve of the commencement date ceased to be fulfilled in the taxpayer, and which has not yet notified the assessing officer thereof pursuant to that section, may give notice pursuant to section 64a(a1) of the Ordinance, as worded in section 40(3) of this Law, within 120 days of the commencement date;
(3)an existing eligible company may notify the assessing officer that it withdraws its request to be considered an eligible family company, pursuant to section 64a(b)(1), as worded in section 40(3) of this Law, within 120 days of the commencement date; where such notice is given, the provisions of that section as worded on the eve of the commencement date shall apply to it.
(f)
(1)The provisions of Chapter IV2 of the Ordinance, as worded in section 40(5) to (18) of this Law, shall also apply to a trust established before the 29th of Tevet 5774 (1 January 2014), in respect of the trustee's income produced or accrued on the 29th of Tevet 5774 (1 January 2014) and thereafter; however, the period for giving notice pursuant to section 75h1(d) of the Ordinance, as worded in section 40(11) of this Law, in respect of such a trust, shall be 180 days from the commencement date;
(2)Notwithstanding paragraph (1), section 75g(e) of the Ordinance, as worded on the eve of the 29th of Tevet 5774 (1 January 2014), shall apply in respect of a trust that became a trust of Israel residents after one of its settlors became a resident of Israel for the first time, a veteran returning resident or a returning resident, as referred to in section 14(a) or (c), before the commencement date; if the settlor passed away before the end of the period under sections 14(a), (c) or (d), 16 or 97(b) or (b3), as the case may be, the provisions under those sections shall apply to the trustee's income, provided that all the beneficiaries are eligible residents to whom those provisions apply or foreign residents;
(3)In respect of a trust established before the commencement date, notwithstanding paragraph (2) of the definition of "asset-holding trust company" in section 75c of the Ordinance, as worded in section 40(5) of this Law, and in section 75h1(d)(3) of the Ordinance as worded in section 40(11) of this Law, the date for giving notice to the assessing officer as referred to in those provisions shall be at the time of submission of the return pursuant to section 131 of the Ordinance for the first tax year commencing from the date of publication of this Law.
(g)The provisions of section 100a1 of the Ordinance, as worded in section 40(22) of this Law, shall apply to assets outside Israel on the date of entry into force of regulations to be made by the Minister of Finance, with the approval of the Finance Committee of the Knesset, which shall prescribe provisions for the prevention of double taxation within their meaning in section 200 of the Ordinance; for this purpose, "Israel" – includes the Area.
(h)Section 191 of the Ordinance, as worded in section 40(29) of this Law, shall apply in respect of a deficiency determined on account of a return submitted pursuant to section 131 of the Ordinance, for the tax year 2013 and thereafter.
Real Property Taxation – Commencement, Application and Transitional Provisions§
44.
(a)
(1)In this section –
"exempt residential apartment" – as defined in section 49(a) of the Real Property Taxation Law;
"transition date" – the 29th of Tevet 5774 (1 January 2014);
"transition period" – the period from the transition date to the 13th of Tevet 5778 (31 December 2017);
(2)For the purposes of this section, the provisions of section 49(b) of the Real Property Taxation Law shall apply.
(b)The provisions of this Section shall apply to the sale of a right in real property or a transaction in a real property association carried out on the commencement date and thereafter, unless otherwise prescribed in this section.
(c)The commencement of sections 47, 48a, 49a(a) and (a1) and 49b to 49f of the Real Property Taxation Law, as worded in section 43(5) to (12) of this Law, shall be on the transition date, and they shall apply to the sale of a right in real property on that date and thereafter.
(d)Notwithstanding the provisions of subsection (c), the following provisions shall apply to the sale of an exempt residential apartment during the transition period:
(1)section 48a(b2) of the Real Property Taxation Law, as worded in section 43(6)(b) of this Law, shall apply to one seller in respect of the sale of two exempt residential apartments only, provided that all of the following are fulfilled:
(a)in the sale of at least one of the two residential apartments during the transition period, the seller would have been entitled to a tax exemption under section 49b(1) of the Real Property Taxation Law, as worded on the eve of the transition date, had that section remained in force at the time of the said sale;
(b)in the sale of a residential apartment received as a gift before the transition date, the conditions prescribed in section 49f of the Real Property Taxation Law, as worded on the eve of the transition date, are fulfilled;
(c)the sales are not to a relative as defined in section 1 of the Real Property Taxation Law, whether for consideration or not, except for the distribution of estate assets among heirs within its meaning in section 5(c)(4) of the Real Property Taxation Law, in the framework of which consideration was given in money or in money's worth that is not an asset counted among the estate's assets;
(2)in the sale of an exempt residential apartment during the transition period to which the provisions of paragraph (1) do not apply, the provisions of section 48a of the Real Property Taxation Law as worded on the eve of the transition date shall apply;
(3)in the sale of an exempt residential apartment during the transition period by a seller who received the apartment as a tax-exempt gift under section 62 of the Real Property Taxation Law during the period from the commencement date to the end of the transition period, the donor shall be deemed, for the purposes of paragraphs (1) and (2), as if he were the seller;
(4)in the sale of an exempt residential apartment during the transition period, section 49b(2) of the Real Property Taxation Law, as worded in section 43(8)(b) of this Law, shall not apply to one who, on the transition date, owned more than one residential apartment in Israel and in the Area as defined in section 16a of the Real Property Taxation Law; for the purpose of counting the apartments as aforesaid, the presumption in section 49c of the Real Property Taxation Law shall apply.
(e)Section 95 of the Real Property Taxation Law, as worded in section 43(18) of this Law, shall apply in respect of a deficiency determined on account of a declaration submitted pursuant to Chapter VII, for the tax year 2013 and thereafter.
Law for the Encouragement of Capital Investment – Commencement and Application§
52.
(a)The commencement of sections 47(b)(2)(a), 51b(c)(1), 51p and 51r of the Law for the Encouragement of Capital Investment, as worded in section 51(1) to (4) of this Law, shall be on the 29th of Tevet 5774 (1 January 2014).
(b)Section 47(b)(2)(a) of the Law for the Encouragement of Capital Investment, as worded in section 51(1) of this Law, shall apply in respect of a dividend distributed on the 29th of Tevet 5774 (1 January 2014) and thereafter, from the income of a company as detailed below:
(1)a company that is the owner of an approved enterprise that is a tourism enterprise as defined in section 40a of the Law for the Encouragement of Capital Investment, which received a grant for the initial establishment of an enterprise or for a previous expansion thereof, and the plan for the establishment of the enterprise or the plan for its previous expansion was approved by the Administration on the 29th of Tevet 5774 (1 January 2014) and thereafter;
(2)a company that is the owner of an approved agricultural enterprise, as defined in the Law for the Encouragement of Capital Investment in Agriculture, 5741-1980 – in respect of its income achieved during the benefits period within its meaning in sections 34 or 35a of that Law, commencing in a plan approved, as referred to in section 18 of that Law, on the 29th of Tevet 5774 (1 January 2014) and thereafter.
(c)Section 51b(c)(1) of the Law for the Encouragement of Capital Investment, as worded in section 51(2) of this Law, shall apply in respect of a dividend distributed from the 29th of Tevet 5774 (1 January 2014) onwards, from the income of a beneficiary company that is the owner of a beneficiary enterprise as defined in section 51 of that Law, achieved during the benefits period commencing in an election year, within its meaning in section 51d of that Law, which is the tax year 2014 and thereafter.
(d)Sections 41p and 51r of the Law for the Encouragement of Capital Investment, as worded in section 51(3) and (4) of this Law, shall apply in respect of income produced or accrued, and a dividend distributed, as the case may be, on the 29th of Tevet 5774 (1 January 2014) and thereafter.
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