NewsCase StudiesEvents

Taxation in Israel

Israel

Taxation in Israel

Recent forum posts

 

  1. Human Resource Assignment Help

    Looking for top-notch Human Resource assignment help? Look no further than MyAssignmentHelp.co.uk! Our platform offers comprehensive assistance tailored to your HR needs. Whether you're tackling topics like recruitment, employee training, performance evaluation, or organizational behavior, our expert team is here to guide you

    Total Posts: 1 Last post by ameliawillson

  2. Professional International SEO Services

    At Delante, we take pride in being a leading force in the digital landscape, offering exceptional International SEO services tailored to enhance your global visibility. Our commitment to excellence and results-driven strategies sets us apart as the go-to partner for businesses aspiring to conquer international markets. Delante specialises in crafting multilingual SEO strategies that speak directly

    Total Posts: 1 Last post by Delante

Taxation in Israel

Once your business has been registered with the registrar, it must be registered with the appropriate tax authority. Registration as a company should be made at the tax authority upon commencement of business activity.

Monthly and Annual Tax Filings

The Israeli fiscal year is generally the calendar year. Branches of foreign public companies may sometimes use a different fiscal year. All companies doing business in Israel are required to file audited annual tax returns and financial statements within five months after their fiscal year. However, extensions may be obtained. Filings may sometimes be spread over a period of up to 13 months after the tax year end date.

Companies must also file monthly returns on accounts, accompanied by tax payments. Bimonthly returns are sometimes acceptable for smaller firms.

Taxes to be filed include:

  • Company tax installments- a percentage of the company's monthly sales revenue

  • Supplementary company tax installments with respect to certain non-deductible expenses

  • Tax withheld from salaries and remittances to suppliers when applicable

  • Value-added tax (VAT)

  • National Insurance

These documents and payments must be received by the fifteenth day after the fact and can be paid at a bank or post office. Late payments may generate an automated fine. Regulations require detailed bookkeeping and invoice requirements for income tax and VAT. Accounting records must be available for inspection in Israel by tax officials.

Income Tax

Personal Income Tax (for both the employed and self-employed) is an incremental taxation starting at 10% and rising to a maximum of 45%. Rates:

  • 10% 1 - 60,840

  • 14% 60,841 - 103,921

  • 23% 103,921 - 168,840

  • 30% 168,841 - 254,880

  • 33% 254,881 - 482,760

  • 45% 482,761 and over

Corporate Tax

All companies registered in Israel are subject to corporate taxes at a current rate of 25%.

According to the tax reform program, the Corporate Tax rate is scheduled to decrease according to the following schedule.

2011 25%
2012 23%
2013 22%
2014 21%
2015 20%
2016 18%

Click here to Ask an Expert about Taxation in Israel

Organisations that can assist with Taxation

    You are not logged in!

    Please login or register to ask our experts a question.

    Login now or register.