The Parliament of Israel has published the Law for the Amendment of the Israeli Tax Ordinance on 5th January 2016, which reduces the standard corporate income tax rate from 26.5% to 25%. This amendment enters into force from 1st January 2016 and applies to income generated after January 1, 2016 on a pro-rata basis. Under the domestic law, withholding tax rates on interest, royalties, or capital gains regarding corporations are subject to 25% from 1st January 2016. Moreover, the VAT rate has reduced from 18% to 17% that came into force on 1st October 2015.
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Transfer Pricing Brief: December 2015
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