Israeli cabinet has approved the Budget for fiscal year 2013-2014. The VAT rate has been raised to 18% as from June 1, 2013 (previously 17%). The corporate income tax rate has been increased to 26% from 25% and the personal income tax rate will be increased by 1.5% for all income brackets as of January 1, 2014. In a further press release it was stated by the finance ministry that the corporate income tax rate will be increased to 26.5%, which is an increase of 1.5% instead of 1% as previously announced.
Related Posts
Israel: Finance committee approves additional tax on financial institutions
March 06, 2024
On 4 March 2024, the Finance Committee of Israel’s parliament (Knesset) passed a measure to impose a 6% tax on financial institutions holding assets equivalent to at least 5% of the total assets held by Israeli banks. This additional tax will be
Read More
Israel to raise bank taxes to 26% in 2024 and 2025
January 18, 2024
On 15 January 2024, Israel's Ministry of Finance proposed to increase the tax rate on bank profits from 17% to 26% in both 2024 and 2025. At present, banks and other financial institutions pay a 17% VAT-equivalent tax on their total payroll and
Read More Israel releases Guidance on MAP and APA procedures
August 21, 2023
On 17 August 2023, the Israel Tax Authority (ITA) released Tax Circular No. 1/2023, which provides guidance for mutual agreement procedure (MAP), and bilateral advance pricing agreement (APA) requests. The new circular replaces the guidance of
Read More Israel publishes a new CbC Notification form
February 09, 2023
The Israeli Tax Authority (ITA) has recently released a new Notification Form 1585 for the disclosure of information related to Country-by-country reporting (CbCR). This includes providing details on group revenues, identifying the Ultimate Parent
Read More
Israel publishes guidance on CbC reporting
January 18, 2023
The Israel Tax Authority (ITA) has released guidelines and Technical instructions for the filing of Country-by-Country (CbC) reports. Multi-National Enterprise (MNE) groups with a combined revenue of ILS 3.4 billion and above, starting from the 2022
Read More Israel: Peer Review on Transparency and Exchange of Information
November 12, 2022
The second stage, phase one peer review report on Israel’s implementation of standards on the exchange of information on request was published by the OECD on 9 November 2022. The first review noted that although a regulatory framework was in
Read More