Προφίλ συναλλασσόμενης χώρας Ισραήλ

Tax rates

Nature of the tax: VAT - (MA'AM in Hewbrew)
Tax rate: 15.50%
Reduced tax rate: Export of products and certain services is not subjected to VAT or is subjected to nil rate.
Other consumption taxes: Tax on Capital gains from real-estate is applicable on the sale of the real estate.
Purchase tax is deducted on some imports or local industrial production.

Corporate tax	26%
Corporate tax for certain foreign companies investing in Israel, particularly in the tourism and industry sectors.	reduced rates from 0% to 25%

Tax rate for foreign companies: The resident companies are taxed on their total income, while the non-resident companies are taxed on incomes from activities in Israel.
Capital gains taxation: 2 rates : 25% / 34%
Main allowable deductions and tax credit: Deduction are granted when the company invests in scientific research in the fields of industry, agriculture, transport or energy. A deduction is possible at the time of investments in oil companies.
Other corporate taxes

The rate is spread over 5 sections.: Tax schedule, monthly returns in shekels.	progressive from 10% to 46%
From ILS 1 to 55,080	10%
From ILS 55,081 to 97,920	15%
From ILS 97,921 to 147,000	23%
From ILS 147,001 to 211,200	30%
From ILS 211,201 to 454,680	34%
More than ILS 454,680	46%

Allowable deductions and tax credit: Tax deductions are granted to residents of priority areas and far from the center of the country.
Special expatriate tax regime: Certain expatriates are subjected to a special system with a maximum rate of 25%, other follow the normal system. Foreign residents are exempted from taxes on capital gains resulting from share investments in the Tel-Aviv Stock Exchange.

Countries with whom a double taxation treaty have been signed: Israel has signed financial agreements with several countries in the world.
Withholding taxes: Withholding tax rates are: 0/4/15/20/25% for dividends, 15/20 for interest and 25% for royalties.
Bilateral agreement

Tax year: The financial year starts from 1 January and ends on 31 December of the same year.
Accounting standards: The Israeli Accounting Standards. Accounting in Israel started with the help of the American Institute called "The American Institute of Certified Public Accountants "(AICPA). The accounting practices in these countries are similar to American practices.
Accounting regulation bodies: IASB
Accounting reports: The financial accounts include a balance sheet, an income statement, a cash flow account and an owner's equity account.
Publication requirements
Professional accountancy bodies: ICPA
IFAC
Certification and auditing: Audit is carried out by external auditors in the company.KPMG, Ernst and Young, Pricewaterhouse Coopers, Deloitte.
Accounting news