Accountancy in Israel

>> Withholding Taxes in Israel

As a general rule payment to a foreign person is taxed at a flat rate of 25% unless there is a reduced rate or exemption according to a tax treaty.

Banks are obliged to deduct 25% when transferring payments abroad unless the payment falls under the list of exemptions or the payer supplies an exemption from the tax authorities.

An Israeli business must deduct at source tax on payments for assets and services. The percentage, up to 35%, is determined by nature or turnover of the business but exemptions are very common especially if the payee is in a loss or pays tax advances.


Latest version updated 5th April 2019

Country Breakdown

8.7

Million

Population

?

Israeli New Shekel

Currency

$ 318.7

Billion

GDP

20,770

km2