Bill cutting foreign-funded NGOs' tax break passes early vote

February 17, 2016 20:18

Legislation taxing foreign government contributions to NGOs agreeing to act in the donors' interest passed a preliminary reading in the Knesset Wednesday.

The bill proposed by MK Robert Ilatov (Yisrael Beytenu), would label an NGO a "foreign agent" if it receives foreign government funding in exchange for promoting the interests of a foreign political entity or mostly targeting people outside of Israel.

If the initiative becomes law, the NGO will have to report on such commitments and write that it is a foreign agent on all publications. If not, it will be find NIS 14,400, or NIS 29,200 if it is incorporated.

Any foreign government funding the organization receives on condition that it acts in a certain way would be taxed, as opposed to most donations to NGOs.

Hospitals and institutes of higher education are exempted from the bill.

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