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Israel
Overview
Last reviewed - 17 September 2024Israel, a parliamentary republic, is located on the eastern shore of the Mediterranean Sea. It is bordered by Lebanon and Syria to the north, Jordan to the east, and Egypt to the southwest. The capital of Israel is Jerusalem, and its currency is the shekel (ILS). Currently, there are two official languages in Israel: Hebrew and Arabic.
Israel has a technologically advanced market economy that depends on imports of crude oil, grains, raw materials, and military equipment. Recent natural gas discoveries off the coast of Israel have been a positive development for Israel, which otherwise has limited natural resources. Israel also has intensively developed its agricultural and industrial sectors over the past 20 years. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. The Bank of Israel expects gross domestic product (GDP) growth in the Israeli economy to increase in 2022 by 5.5%.
PwC Israel, the leading professional tax services firm in Israel for decades, was founded in 1924 by CPA Robert D. Kesselman from New York. PwC Israel is organised around industries to share the latest research and points of view on emerging industry trends, develop industry-specific performance benchmarks based upon global best practices, and share methodologies and approaches in complex areas such as financial instruments and tax provisioning, with specific focus on these industries by sectors:
- Oil and gas.
- Banking and capital markets.
- Education and non-profit.
- Entertainment and media.
- Financial services.
- Industrial manufacturing.
- Insurance.
- Pharmaceuticals.
- Retail and consumer.
- Technology.
- Telecommunications.
- Transportation and logistics.
In addition to audit, assurance, and financial consulting, PwC Israel offers tax services, including, amongst others, advisory and strategic planning in the areas of both Israeli and international tax, corporate tax, mergers and acquisitions, transfer pricing, indirect taxes, property tax, personal income tax for foreign and Israeli tax residents, as well as access to the Israeli Tax Authorities computerised database used for tracking details of claims and progress of tax assessments.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
23 |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
Within five months after the end of the tax year. |
| CIT final payment due date |
If the balance due is paid by the end of the first month following the end of the tax year, the taxpayer should receive a full exemption from any interest and linkage differentials. |
| CIT estimated payment due dates |
Taxpayers are required to pay monthly tax advances by the 15th of each month. There are 12 monthly advance payments based on a fixed percentage of the company's turnover or there are ten monthly payments beginning in the second month of the company's tax year based on the previous year's tax assessment. |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
50 |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
30 April |
| PIT final payment due date |
NP |
| PIT estimated payment due dates |
Withholding taxes in respect of salary payments effected from the 14th day of one month to the 13th day of the following month are payable on the 15th day of that following month. Self-employed individuals are generally required to make monthly or bimonthly advance tax payments, usually based on a percentage of turnover. |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) |
17 |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
Resident: 0 or 23 / 23 / 30; Non-resident (non-treaty): 25 or 30 / 23 / 23. Please note that the above rates are for companies only. We have not addressed the rates for resident individuals. |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
Capital gains are subject to the normal CIT rate. |
| Headline individual capital gains tax rate (%) |
25 |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
NA |
| Headline gift tax rate (%) |
NA |
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