Under current Israeli tax law, an individual’s tax residency status is determined primarily by the “Center of Life” test, which examines personal, economic, and social ties to Israel and another country. The test is supplemented by numerical presumptions that look to the number of days an individual is present in Israel over a period of time looking to one year or three years. A determination based on day count can be challenged by either the taxpayer or the Tax Authority. In 2023, a draft bill was published that provided an irrebuttable determination of tax residence or nonresidence in certain fact patterns. The draft bill was never enacted. In July, the Israeli Ministry of Finance announced draft legislation designed to modify existing rules. In his article, Boaz Feinberg, a Tax Partner of Arnon, Tadmor-Levy, Tel Aviv, explains the proposal in detail, including the new five-year rolling testing period and the weight given to days in each year of the testing period. He points out that days of presence in later years can affect the residence status in earlier years.