The government has approved the 2015 Budget proposal on 7 October 2014, which will now be transferred to the parliament for its enactment. A 10% tax rate would be charged on payments to illegal immigrants. Payments regarding conclusion of service would be regarded as regular income subject to advanced tax rate. But recently it is disputed whether these payments should be considered as capital gains and therefore subject to a reduced tax rate.
Related Posts
Israel announces 2025 state budget, increases VAT rate
November 06, 2024
Israel’s government passed the budget for 2025 on 1 November 2024. The 2025 budget includes various tax hikes, such as an increase in the standard VAT rate from 17% to 18% and spending cuts on most ministries. The Israeli Cabinet cited that tax
Read More
Ghana negotiates tax treaties with Hungary, Israel, UAE, Korea, EgyptÂ
September 03, 2024
Ghana announced that it is negotiating to establish income tax treaties with Hungary, Israel, UAE, Korea, and Egypt. Daniel Nuer, Head of the Tax Policy Unit at Ghana's Ministry of Finance, revealed that the Ministry plans to implement
Read More Israel: Central Bank won’t cut interest rates again in 2024
September 02, 2024
Andrew Abir, Deputy Governor of the Bank of Israel, said that the central bank will not reduce short-term interest rates in its final two policy meetings in 2024 on Wednesday, 28 August. The Governor said that this decision was taken due to
Read More Israel to implement Pillar Two QDMTT in 2026
August 19, 2024
Israel's Ministry of Finance announced its initial plan to implement the qualified domestic minimum top-up tax (QDMTT) in 2026, as part of the OECD Pillar Two international tax reform. The enforcement of QDMTT will eliminate the need for Israeli
Read More
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