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Tax authorities

Israel Tax Authority
5 Kanfei Nesherim Street, Givat Shaul, 91010 Jerusalem, Israel
Tel: +972 2 655 9559
Fax: +972 2 652 5327
Website: www.mof.gov.il

Tax rates at a glance

(As of September 2009) 

Corporate income tax rate (%) 26(a)
Capital gains tax rate (%) 25/26
Branch tax rate (%) 26(a)

Withholding tax (%)
Dividends 0/4/15/20/25(b)(c)(d)
Interest 15/20(b)(c)(e)(f)(g)
Royalties from patents, know-how, etc. 25(b)(c)(e)
Branch remittance tax 0(h)

Net operating losses (Years)
Carryback 0
Carryforward Unlimited

(a) This is the regular company tax rate for profits and real capital gains for 2009. The rate is scheduled to decrease to 25% for 2010 and future years. Company tax rates ranging from 0% to 25% are available for privileged enterprises and approved enterprises or properties, and in other cases.
(b) The withholding tax is subject to applicable tax treaties.
(c) The withholding tax applies to nonresident companies and to individuals.
(d) This is a final tax. For details regarding these rates, see Section B.
(e) In principle, the withholding taxes on interest and royalties are not final taxes, but nonresidents without an Israeli presence generally do not take any further action.
(f) Alternatively, nonresident lenders may apply to pay regular company tax on their lending profit margin after deducting proven lending expenses.
(g) At the discretion of the tax authorities, interest paid to recognised foreign financial institutions that lend funds to projects benefiting Israel's economy may be subject to a reduced rate of 15% of the amount by which the loan interest exceeds the London interbank offer rate (LIBOR).
(h) A 15% tax is imposed on the approved enterprise profits and approved property profits of a branch after deducting company tax. In principle, this tax is payable together with the company tax, but the tax commissioner may allow payment of this tax on approved enterprise profits and approved property profits to be deferred until the relevant branch profits are withdrawn from Israeli business operations. This tax may be overridden by a tax treaty.

Source: Ernst & Young

Tax

In September 2008 dramatic legislation was announced concerning new immigrants. They will enjoy a 10-year exemption from Israeli taxes on foreign assets and on any income generated abroad, including foreign salaries and foreign passive income including ... [more]

Ernst & Young's tax team is led by Doron Kochavi. Sharon Shulman heads the firm's substantial international tax practice and is well regarded by his peers. The firm has a strong transfer pricing team led by Lior Harary-Nitzen. The firm is heavily involved ... [more]

Herzog Fox & Neeman has one of the largest tax practices of any commercial law firms in Israel. It consists of six partners and it has 20 people in total. The firm is involved in corporate tax, international tax, multinational companies, hedge funds ... [more]

PricewaterhouseCooper's tax team consists of 10 partners and about 100 tax fee earners. The firm provides services in the areas of corporate taxation, international taxation, M&A, cross-border tax structuring, transfer pricing, capital markets and tax ... [more]

Gornitzky & Co's tax practice is involved in innovative tax planning and structuring and negotiates large scale and complex tax transactions. The firm also specialises in representing private individuals and companies in litigation relating to complex ... [more]

KPMG's tax department consists of around 100 people and has five partners. The firm is led by international tax partner John Fisher, who is supported by another international tax partner. Clients include major banks, major retailers, conglomerates and ... [more]

Shekel & Co tax team consists of three partners and is led by founding partner Moshe Shekel who is an expert in the field of litigation. The firm handles matters such as income tax, international taxation, real estate taxes, municipal taxes, VAT, customs ... [more]

Alter Attorneys at Law's tax team includes seven partners led by Anat Tenne, who is a dual qualified accountant and lawyer and specialises in international taxation. Amachai Pery and Shlomi Regev work in generally the same area as Tenne, while Ziv Sharon ... [more]

Deloitte's tax practice consists of seven partners and has 70 tax fee earners. The firm is led by Zvi Friedman. The firm provides an international tax service, with Yitzchak Chikorel heading the international tax practice. He is recognised for his work ... [more]

Goldfarb Levy Eran & Co's tax team is led by Tal Atsmon. The firm focus on M&A, venture capital, hedge funds, employee benefits and litigation. Yaron Sever advised Barr Pharmaceuticals on the tax aspects of its $9 billion acquisition by Teva Pharmaceuticals. ... [more]

S Friedman is one of the oldest firms in Israel. The tax team consists of four partners and 12 fee earners. The firm has strengthened its international focus by hiring Henriette Fuchs as a partner. She is Dutch and is an EU lawyer, heading a committee ... [more]

Eitan Mehulal tax team is led by founding partner Yaron Mehulal. The firm advises on M&A, cross-border transactions, indirect taxation, employee stock options, US taxes, tax opinions and tax controversy. The firm's clients include Saifun Semiconductors ... [more]

Gross, Kleinhendler, Hodak, Halevy, Greenberg's tax department is led by Samuel Borenstein. The firm advises on international commercial transactions, including M&A, project finance and technology transactions. The firm is also involved in the tax aspects ... [more]

Yigal Arnon & Co's tax practice is led by Harry Kirsch who is supported by partner Yair Benjamini and one associate. The firm advises on corporate tax, international tax, M&A, VAT, real estate, cross-border structuring and litigation. Kirsch advised ... [more]

See also

Israel
Middle East (Regional Rankings)

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