Impostos a Israel

Company Tax

23%

Tax Rate For Foreign Companies

Resident companies, or companies incorporated in Israel or managed and controlled in Israel, are taxed on worldwide income and capital gains, while non-resident companies are only liable to Israeli taxes on income originating in Israel.

Capital Gains Taxation

The real gain is generally subject to tax at the corporate tax rate applicable in the year of the gain (23% in 2023). The inflationary component of a gain accrued as from 1 January 1994 is exempt from tax. An Israeli resident is subject to capital gains tax on the disposal of its assets, regardless of whether the assets are located in Israel. Capital gains derived from the sale, exchange, transfer or other disposition of tangible and intangible capital assets located in Israel are treated as Israeli-source income and are subject to capital gains tax. Those who are not residents of Israel for tax purposes are exempt from capital gains tax on gains from the sale of shares traded on the Tel Aviv stock exchange unless the gain is attributable to a permanent establishment of the foreign seller in Israel. Exemptions apply to gains derived by non-residents from the sale of securities in Israeli or Israeli-related companies acquired on or after 1 January 2009 (the exemption is subject to certain ownership conditions).

Main Allowable Deductions and Tax Credits

Expenses incurred wholly and exclusively in the production of income are generally tax-deductible.
Generally, pension fund contributions made to recognised funds are deductible for the employer, provided they are not above a certain level and are made regularly. Interest expenses incurred in the production of taxable income are normally deductible. Provisions for bad debts are deductible in the year in which it is evident that the debt has become irrecoverable.
Goodwill purchased may be amortisable over a ten-year period (10% per year). Donations of at least ILS 200 (for 2023) to approved state or charitable institutions within a tax year are eligible for a tax credit. The amount of the credit is calculated by multiplying the contribution amount by the corporate tax rate applicable during that year. However, the credit amount cannot exceed the lower of two options: (i) 30% of the corporation's taxable income for the year, or (ii) ILS 10,019,808 (in 2023). Any unused tax credits can be carried forward for up to three years, subject to specific regulations.

Business losses can be offset against income from any source in the same year. Losses may be carried forward and set-off without a time limit against income from any trade or business or capital gains arising in the business (but not against income from any other source), whereas loss carrybacks are not allowed.
Payments of interest, royalties, and management fees to foreign affiliates are deductible (conditions apply).

Tax and cash incentives are provided for companies that qualify for the "Preferred Enterprise (PFE) regime", generally those who contribute to the development of the productive capacity of the economy, absorption of immigrants, creation of employment opportunities, or improvement in the balance of payments. The "Special Preferred Enterprise (SPFE) regime" applies to certain large corporations that can demonstrate their great contribution to the Israeli economy. Another regime is that of "Preferred Technology Enterprise", for companies engaged in the technology sector and that are part of a group of companies with aggregate annual revenues less than ILS 10 billion, among other conditions.

Other Corporate Taxes

Municipalities levy an annual tax on buildings, based on the size, location, and purpose of the property. Property taxes are generally imposed at the municipality level on the occupier of commercial and residential real property. Unoccupied property is generally taxed on the property's owner.
Capital gains on real estate are subject to the land appreciation tax law. The tax rate on the real gain is the applicable corporate tax rate (23% in 2023).

All property purchase is subject to tax, at rates varying between 0% and 10% depending on the status of the buyer (Israeli citizen, foreign resident in the process of obtaining Israeli citizenship, foreign citizens making Aliyah), the number of properties held (one or multiple) and the value of the real estate. The highest rate applies when the purchase price exceeds ILS 19,575,755.

Social security contributions paid by the employer for Israeli-resident employees are 3.55%, up to a monthly income of ILS 7,122 and 7.6% on the difference between ILS 7,122 and the maximum monthly income of ILS 47,465. For non-resident employees, lower rates apply: 0.59% up to a monthly income of ILS 7,122 and 2.65% on the difference between ILS 7,122 and the maximum monthly income of ILS 47,465.

Non-profit organizations are subject to a tax of 7.5% of payroll in lieu of VAT. A similar tax is levied on financial institutions, at a rate of 17%.

Other Domestic Resources

Israel Tax Authority

Tax Rate

Allowable Deductions and Tax Credits

Tax deductions are grantedfor life insurance premiums and pension fund contributions.
Residents are entitled to personal tax credits against their tax liabilities according to their status. Each point is worth ILS 235 per month, with resident individuals being entitled to a minimum of 2.25 points. Additional points are granted for dependent children, new immigrants, and single-parent families.
New immigrants and returning residents (who were foreign residents for a continuous period of at least ten years and returned to Israel to become an Israeli tax resident after such period) may enjoy tax benefits upon becoming tax resident in Israel.
Mortgage interest and medical expenses are not deductible. A tax credit of 35% may be granted for charitable contributions (up to 30% of annual taxable income or ILS 10,019,808, whichever is less). Tax credits and deductions are granted for payments for life insurance premiums and to provident and pension funds (conditions apply). Subsistence expenses for work-related travels out of town or abroad may be deducted under certain conditions.
For self-employed individuals and certain employees, contributions to an approved provident fund and a training fund are deductible (ceilings apply).

Special Expatriate Tax Regime

Israeli residents have to pay personal income tax, social security tax, health tax and capital gains tax on a universal basis. Non-residents are taxed on incomes received in Israel at the same rates as residents (though social security contributions vary, see the above section). The health insurance tax is not levied on non-residents.
"Approved specialists" are foreign experts that are appointed by the Investment centre to perform jobs or provide skills that Israeli residents cannot offer. They are subject to a maximum income tax rate of 25% for three years (with a possible extension of up to five years). Foreign residents are exempted from taxes on capital gains resulting from share investments in the Tel-Aviv Stock Exchange.
New immigrants and returning residents may enjoy several tax benefits upon becoming tax-resident in Israel. For more details consult the website of the Government of Israel.