Corporate Tax in Israel

Overview by
Tax Base For Resident and Foreign Companies
The resident companies are taxed on their total income, while the non-resident companies are taxed on incomes from activities in Israel.

Tax Rate

Corporate tax 24%
Corporate tax for certain foreign companies investing in Israel, particularly in the tourism and industry sectors. Reduced rates from 0% to 24%
Tax Rate For Foreign Companies
Foreign companies are taxed as national companies  except if they are involve in fundings in industries and tourism.
Capital Gains Taxation
The standard rate is 25%
Main Allowable Deductions and Tax Credit
Deduction are granted when the company invests in scientific research in the fields of industry, agriculture, transport or energy. A deduction is possible at the time of investments in oil companies. For additional information, consult the Deloitte Tax Guide.
Other Corporate Taxes
Access the 2010 Deloitte Tax Guide on Israel.

Country Comparison For Corporate Taxation

  Israel Middle East & North Africa United States Germany
Number of Payments of Taxes per Year 33.0 21.6 11.0 16.0
Time Taken For Administrative Formalities (Hours) 235.0 194.1 187.0 215.0
Total Share of Taxes (% of Profit) 31.7 32.8 46.8 48.2

Source: Doing Business

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

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  • Dov Weinstein & Co. C.P.A. (Isr)

    Accounting and tax, Israel