Israel

Corporate - Significant developments

Last reviewed - 01 July 2022

There have been no significant corporate tax developments in Israel during the past year.

For companies that have accumulated undistributed exempt profits generated from the special tax regimes under the Approved Enterprise or Benefit Plans of the Encouragement Law, there is a claw-back of corporate tax when such tax-exempted profits are distributed. New Israeli legislation provides for reduced corporate tax rates when the "trapped profits" are distributed during the one year period starting November 15, 2021. Certain conditions must be satisfied to be eligible for the reduced tax rate which include, inter alia, that specific investment requirements have been met.