Focus on four matters dealt with the reform: (a) the taxation of stock exchange profits and the abolition of the tax exemptions in respect of certain passive income; (b) the gradual lowering of the income tax rates applicable to earned income; (c) replacing the "territorial" test for determining the scope of income tax by the "personal" test of "residence", thus taxing Israelis on their worldwide income; and (d) the provisions relating to transfer pricing and transparent companies.