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Israel

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Tax authorities

Israel Tax Authority
The Custom and VAT Authority
5 Bank of Israel St,
The New Government Complex,
Jerusalem, Israel 91002
Tel: +972 2 666 4000
Fax: +972 2 666 4011

Income Tax Commission
5 Kanfei Nesharim Street,
Jerusalem, Israel
Tel: +972 2 655 9559
Fax: +972 2 652 5327
Email: financeisrael@mof.gov.il
Website: www.financeisrael.mof.gov.il

Tax rates at a glance

(As of September 2012)

Corporate income 25% (b)
Capital gains 25% (a)
Branch tax 25%
Withholding tax
Dividends 20%/25% (c)
Interest 15%/20%/25% (d)
Royalties 25%
Technical service fees 25%
Branch remittance tax 0%
Net operating losses
Carryback 0
Carryforward Indefinitely
  1. The capital gains tax rate depends on the purchase date and the nature of the asset.
  2. The basic rate of company tax increased from 24% to 25% on January 1 2012.
  3. A 25% withholding tax is levied on dividends paid to a controlling foreign resident shareholder (i.e. one that holds 10% or more of the Israeli payer’s shares for a period of 12 months before payment); otherwise, the rate is 20%.
  4. The withholding tax levied on interest is dependent on the type of loan (whether or not linked to the index) and whether the recipient of the interest income is an individual or a “body of persons”.

Tax

Israel's economy has managed to remain somewhat steady despite the global economic downturn. At the same time, the prime minister announced in July 2012 the government's intention to increase taxes and cut spending to sustain itself through what is expected ... [more]

Head of tax at Deloitte, Zvi Friedman is regarded highly for his "expertise in Israeli tax issues. He knows the system and we [client] are able to receive good result with the Inland Revenue Service". The firm is known for its ability to use its international ... [more]

Ernst & Young is made up of a group of veteran tax professionals. Sharon Shulman is the head of tax, leading six partners and about 60 other professionals. Shulman is respected by peers for his knowledge in cross border structuring and M&A.The team works ... [more]

A major area of focus for the tax team at Herzog Fox & Neeman is on corporate tax advice in cross-border transactions. The tax team is divided into five departments: corporate tax, taxation of high net worth individuals, employee equity benefit plans, ... [more]

KPMG's tax practice is led by Eran Shalev. The team largely serves prominent clients in traditional markets such asretail, industry and finance. The audit and tax practice have close links and many of the the firm's tax work is done for companies that ... [more]

PwC

For multinational companies, a large emphasis is placed on a tax adviser's ability to be well versed in more than one country's tax laws to be able to inform their clients competently. Gerry Seligman, who heads the PwC tax team, is considered by clients ... [more]

New to the World Tax rankings, BDO has a solid tax and audit presence with nine tax partners and 46 support staff. The tax practice is led by veteran Eyal Rubin. BDO Israel maintains a strong connection with the BDO international network. The international ... [more]

Rivals recognise Gornitzky & Co's tax practice to be one of the law firms "that have major substance in their tax department," another describes as an "excellent firm". Daniel Passerman leads the tax team and is an individual that has left a good lasting ... [more]

Fahn Kanne & Co Grant Thornton's tax department provides a comprehensive range of consulting services in all areas of taxes. The department is able to carry out international tax planning schemes and transactions through the use of the Grant Thornton ... [more]

Moshe Shekel is highly respected within the industry for his work in tax controversy and corporate tax. The strength of Shekel & Co's practice focuses on two areas: tax planning and litigation work.Ofer Elboim is a partner that is well known for his ... [more]

Alter Attorneys at Law is a boutique tax law firm that offers reputable support in legal representation before the Israeli courts and tax authority. Managing partner, Anat Tenne, oversees the team that has five other partners. Yehuda Lieblein joined ... [more]

In June 2011, Eitan, Mehulal Law Group merged with Sadot & Co law offices and is now known as Eitan, Mehulal & Sadot. The merger has expanded the range of tax expertise offered, strengthening their practice in all direct and indirect tax matters. The ... [more]

Elieser Kaplan is a boutique tax law firm led by founder Eliser Kaplan, supported by associate Hana Adler Somekh. The firm provides tax planning, international tax and tax controversy advice to their clients.The team recently concluded an agreement with ... [more]

Fischer Behar Chen Well Orion & Co is a full-service law firm with a reputable tax department that is led by Anat Shavit. Clients recognise their expertise in legal representation before the courts and ability to deal with complex business structures.Peers ... [more]

Goldfarb Seligman & Co is one of the largest law firms in Israel. Formerly known as Goldfarb Levy Eran Meiri Tzafrir & Co, the firm merged with Seligman & Co in June 2011. The tax team comprises three partners and four support staff. A large portion ... [more]

Dan Bein, a university professor, along with his founding partners Yoav Bein and Liora Bein-Alon have established the law firm, Professor Bein & Co, which specialises in taxation. The strength of thefive partner-team lies in representing clients in front ... [more]

See also

Israel
Middle East

Firm contact details