I have just asked my accountant and he sais that seting up an Amuta
needs 9 people (7 in management and 2 in control) about 15.000 NIS in the 
first year (for accounting) and about 10.000 in the folowing years for 
accounting.

Then it taks about 1 year to get the license that allows tax deduction for
those who give money to the Amuta.
The ammota has to pay VAT (MAAM) the same way any person pays
and cannot get it back from the TAX authorities 
On the other hand if someone gives you money he does not have to pay you 
VAT. This is interesting for people giving you money but for companies 
this is not relevant. Also once you get that license the company giving 
you money will get 35% tax refund but if you were a company it would get 
36% tax refund.


So basically in the first year you have no advantage of being an Amuta 
over being an Ltd. and later if you get that license  you have advantage 
only if you want to receive money from individuals (they can get tax 
refund) or if you want to get money from government or special funds of 
companies. Otherwise it is the same thing as having a company.

Ok, maybe it was not that imortant to write this down now but as i had to
sit with my accountant today anyway so I thought i'll share with you
some of our conversation :-)


regards
-- Gabor



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