Accountancy in Israel

>> Allowances in Israel


Depreciation is recognized on a straight line method base on the cost of the asset.

Rate of Depreciation %
Buildings 1.5 – 4
Furniture and fixings 6 – 12
Machinery 7 – 25
Cars 15
Electronic equipment 15
Computers 33

The arm’s length principal

In an international deal where special relation exists between the parties and as a result of these relations a different price or conditions were determined, such a deal must be reported for tax as it was done at market price and conditions. Such a deal must be revealed in the yearly tax reports and be indicated what method was used to determine the market price and conditions.

The tax payer can apply for a pre ruling to determine the criteria he must stand up to.

According to market pricing regulations a survey of market conditions must be prepared in order to determine if the international deals between the related parties are at market price.

Latest version updated 4th April 2019

Country Breakdown





Israeli New Shekel


$ 318.7