The Boards of the Israel Diamond Exchange (IDE) and the Israel Diamond Manufacturers Association (IsDMA) have ratified a new agreement that the industry has reached with the Israeli Tax Authority, the terms of which are aligned with international financial regulations, according to an announcememt on the IDE website. It was subsequently also ratified by a special assembly of IDE members.

The inking of the agreement came on the back of ten months of intensive negotiations, the IDE said.

One of the highlights of the new agreement is that diamantaires will no longer pay taxes when they incur losses, unlike in the past when it was paid on turnover even in years when they suffered losses. Moreover, they will now be able to deduct all of their expenses from income and will pay tax only when they show a profit.

The agreement puts diamantaires in compliance with international financial guidelines, while greatly reducing the risk factor for the banks, IDE added. It also enables diamantaires to participate in the “voluntary disclosure” arrangement, with special considerations for unique aspects of the diamond business.

IDE President Yoram Dvash said, “The agreement is truly a win-win situation for Israel and for the diamond sector, which supports thousands of families. It will enable us to concentrate on growing the diamond industry.”

Dvash said that expectations in the industry are that it will now become easier to access much needed lines of credit.