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 effective from 1 April 2024 to 31 December 2025. This additional tax is expected to generate an extra ILS 2.5 billion in revenue. Any surplus beyond the revenue target will be refunded based on pro-rata contribution. The full Knesset must approve this additional tax before it goes into effect.
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