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United States–Israel Educational Foundation Fund Law, 5777-2017

חוק קרן חינוך ארצות הברית–ישראל, תשע"ז-2017

Published: 2017-08-03Consolidated Hebrew text as of 2026-08-12 · Last amended 2017-08-03✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

This English text was translated from the official Hebrew using a range of translation tools, and it undergoes ongoing checks and updates. It is not a certified translation.

Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

This translation is provided for informational purposes only and does not constitute legal advice. For use in legal proceedings, request a certified Expert Legal Opinion.

Definitions§

1.
(a)In this Law –

"the Agreement" – the agreement between the Government of Israel and the Government of the United States of America regarding the financing of certain exchange programmes in the field of education, which entered into force on 22 June 1962, including the amendments to the Agreement that entered into force on 23 March 1967 and on 30 January 1985 by means of an exchange of notes between the United States of America (hereinafter – the United States) and Israel;

"relative", of a person – his spouse, and also his child and the child of his spouse who are minors;

"the Fund" – the United States–Israel Educational Foundation (USIEF).

(b)Every term in this Law shall have the meaning ascribed to it in the Income Tax Ordinance [New Version], unless expressly stated otherwise.

The Fund – Corporation§

2.

The Fund is a corporation capable of any right, obligation and legal act.

Management of the Fund§

3.

The Fund shall be managed in accordance with the Agreement.

Tax Exemption for the Fund§

4.
(a)Furniture, equipment and all other products intended for the official use of the Fund shall be exempt in Israel from all types of tax.
(b)All monies and assets used for the purposes of the Fund, and all the official activities of the Fund within the framework of its objectives, including the purchase of vehicles, shall be exempt from any taxes, including property tax on assets held by the Fund and used for its purposes, except for a levy or fee.
(c)The exemption referred to in this Section, insofar as it relates to value added tax on purchases in Israel, shall be granted by way of a refund.

Tax Exemption for United States Citizens and United States Grantees Engaged in Educational Activities within the Framework of the Fund§

5.
(a)United States citizens employed by the Fund in Israel and United States grantees engaged in educational activities within the framework of the Fund –
(1)shall be exempt from income tax in Israel in respect of income received directly from the funds of the Fund;
(2)shall be exempt from taxes on their personal property intended for their use, except for a levy or fee, and their relatives accompanying them shall also be exempt from taxes as aforesaid.
(b)In this Section, "personal property" – excluding an asset in respect of which an obligation to pay property tax applies.

Application of the National Insurance Law to United States Citizens and United States Grantees Engaged in Educational Activities within the Framework of the Fund§

6.
(a)United States citizens employed by the Fund in Israel and United States grantees engaged in educational activities within the framework of the Fund shall be treated as United States citizens employed by the United States Embassy, with regard to the payment of insurance contributions and entitlement to benefits under the National Insurance Law [Consolidated Version], 5755-1995 (hereinafter – the National Insurance Law).
(b)Nothing in the provisions of this Section shall derogate from the rights of United States citizens employed by the Fund in Israel, in respect of periods that preceded the date of commencement of this Law for which insurance contributions were paid under the National Insurance Law.

Implementation§

7.

The Minister of Foreign Affairs is responsible for the implementation of this Law.

Commencement and Application§

8.

This Law shall commence, except for sections 4, 5 and 6(a), on 1 January 2000; notwithstanding the aforesaid, the exemption from property tax on assets held by the Fund and used for its purposes as referred to in section 4(b) shall apply from 1 January 2000 onwards.

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חוק קרן חינוך ארצות הברית–ישראל, תשע"ז-2017

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United States Israel Educational Foundation

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