Israel

As of 2025, a number of legislative changes have come into effect regarding the taxation of income generated by closely held companies (see the Taxes on corporate income section).

As of 2025, the standard value-added tax (VAT) rate in Israel increased from 17% to 18%.

Pursuant to a recent legislative amendment to the Income Tax Ordinance, a number of key conditions and requirements previously applying to non-taxable reorganisations under Israeli tax law have been relaxed or repealed, thus, generally speaking, making it easier to execute non-taxable reorganisations in Israel (detailed rules apply).

For tax years beginning after 31 December 2025, Israel has adopted a qualifying domestic minimum top-up tax (QDMTT) (see the Taxes on corporate income section).

For tax years 2026-2030, an exemption from corporate tax may be available for companies with a presence in Israel arising as a result of the employment of a new immigrant or senior returning resident (see the Corporate Residence section). Detailed rules apply.