Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.
Yes we tax in Israel
New tax reform: No specific information
New tax treaties:
- Tax treaty between Israel and United States is under revision.
- Tax treaty between Israel and Norway is under negociation.
Local tax advisors
No specific information on the local tax advisors.
Local tax administration
Website Ministry of Finance: Click here
Resident companies are taxed on their worldwide income.
Entities are considered to be resident for tax purposes in Israel if their place of management & control is in Israel, or if the company is incorporated in Israel.
However, the place of residence is subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is 24% for 2017 and 23% for 2018.
Non-taxable income includes the following:
- Local dividend distributions
Non-deductible expenses includes the following:
- CIT and similar taxes
Carry forward: Yes, but some restrictions may apply
Carry back: No
Companies should submit the tax return annually within 5 months before the end of tax year.
Annual tax returns are established by the company on a self-assessment system.
Companies shall pay advance payments.
Whithholding Taxes (payment to foreign companies)
The local tax rates in Israel are the following, subject to the provisions of an applicable double tax treaty, if any.
There is no WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 30%.
Note: the WHT is 25% if the company is held less than 10% or is a listed company.
The general rate of WHT on interest is 25%.
The general rate of WHT on Royalties is 26.5%.
The general rate of WHT on management fees is 30%.
The general rate of WHT on technical services is 30%.
Capital gains are taxed as general income under the regular CIT.
Note: in certain cases capital gains are not taxable.
Standard VAT tax rate is 17%
Zero-rated supplies include, subject to certain conditions:
- exports of goods;
- Certain tourism services;
Certain non-resident companies (which are not required to register and incur Israel VAT in the course of their business activities in Israel) may apply for a refund.
No other specific information of VAT in Israel.
The general statute of limitation is 6 years.
The statute of limitation could be extended to 10 years in certain cases of fraud.
No specific information on the repatriation of income and capital from Israel.
There are no thin capitalization rules in Israel.
Do not hesitate to share your experience in Israel with us in the comments below. Any comments are welcome !