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and requirements previously applying to non-taxable reorganisations under Israeli tax law have been relaxed or repealed, thus, generally speaking, making it easier to execute non-taxable reorganisations in Israel (detailed rules apply).