www.Aaptaxlaw.com
   
 
 

 

Israel Tax Rate for 2016-2017, 2015-2016, 2014-2015

Israel Annual Income Tax for an Individual for 2016

Taxable income bracket (IS)

Tax Rate %

 

1 - 62,640

 

10%

 

62,641 - 107,040

 

14%

 

107,041 - 166,320

 

21%

 

166,321 - 237,600

 

31%

 

237,601 - 496,920

 

34%

 

496,921 - 803,520

 

48%

 

803,521 and Over

 

50%

 

 

 

Israel Annual Income Tax for Passive Income (Business, Rental etc) 2016

Taxable income bracket (IS)

Tax Rate %

 

1 - 237,600

 

31%

 

237,601 - 496,920

 

34%

 

496,921 - 803,520

 

48%

 

803,521 and Over

 

50%

 

The tax system in Israel:

Israel's tax laws took a major change from 1.1.2003.

According to Israel's tax reform tax is levied on personal basis, instead of the previous territorial basis, Israelis pay tax on all sources of income, in Israel and abroad.

In 2016Israel's corporate income tax rate is 25%.

Individual income tax rates in 2016 are 10%-50%.

There are reduced tax rates for passive income, e.g. flat rental and interest.


Taxation of Current Income (Personal Income Tax)

Personal Income Tax (for both the employed and self-employed)is a progressive tax starting at 10% and increasing to a maximum of 50% (at present, on a gross monthly income of about USD 17,000).

Allowance points are granted on the tax due which reduces the tax payable (an allowance point is worth approximately $650 a year).

 

Timing the Payment of Tax

Tax due from an employee is deducted at source by his employer.

The employer transfers the tax to the Income Tax on the 15th of the month for the preceding period.

Employers who have a large number of employees report to the Tax Authorities once a month, while employers with a lesser number of employees submit their returns once every two months (thus, for example, a small employer will submit a return for January and February on March 15).

Self employed persons as well as limited companies, pay an advance to the Income Tax on the 15th of the month. Here, too, businesses that report once every two months on the 15th of the following month are differentiated from larger businesses that submit a return once a month.

Most of the advances for the self-employed/companies are determined by the Tax Authorities according to the figures in the annual return that the business submitted for the previous year. Advances for new businesses are fixed by the Tax Authorities according to the accepted percentage for the sector to which the business belongs.

The system of prepayment of taxes is usually based on a percentage of the total receipts of the business, regardless of the actual expenses that were incurred during the month.

Israel Corporate Tax

Corporate tax, including income tax and corporate tax is fixed at the rate of 25% in 2016.

This rate refers to the undistributed profits of the corporation.

In certain cases, a reduced rate of tax is payable or an exemption granted, mainly to certain industrial companies defined as "approved enterprises", as will be specified below.

Israel Social Security

Social security payments are subject to a monthly ceiling of I.S. 43,240 (2016)
The top rates are:
Employer - 7.5%
Employee -12.0%
Self employed pay 9.82% for monthly income of up to IS 5,678, 16.23% on the excess up to IS 43,240.
Israel Tax Withholding
The tax withholding rates for payments to non-residents are:
Dividend - 25%/30%
Royalties - 25%
Interest - 15%/20%/25%

Israel Income Tax Rates 2014 and Deductions

Israel Income Tax Rate for Individual Tax Payers

Lowest Individual Tax Rate is 10% and Highest Rate is 50%

Taxable income bracket (IS)

Tax Rate %

 

1 - 63,360

 

10%

 

63,361 - 108,120

 

14%

 

108,121 - 168,000

 

21%

 

168,001 - 240,000

 

31%

 

240,001 - 501,960

 

34%

 

501,961 - 811,560

 

48%

 

811,560 and Over

 

50%


Note :The annual tax rates for passive income, e.g. business rental, are:
Tax % Income (IS)
31% 1-240,000
34% 240,001-501,960
48% 501,961 -811,560
50% 811,561 and over

Corporate Tax Rates in Israel

Corporate tax, including income tax and corporate tax is fixed at the rate of 26.5% in 2014.

This rate refers to the undistributed profits of the corporation.

In certain cases, a reduced rate of tax is payable or an exemption granted, mainly to certain industrial companies defined as "approved enterprises", as will be specified below.

Capital Gains Tax in Israel

The rate of tax payable on capital gains interest and dividend from shareholding is 20% for non-qualifying shareholding of up to 25% in a unlisted company.

For the purpose of calculating a capital gain, the gain is decreased in line with the rate of increase in inflation, from the date of purchase to the date of sale. In regard to capital gains in a corporation, identical relief is allowed at the rate of increase in the Index.

Companies pay 27.5% tax on capital gains. In sale of participation, 95% is tax exempt, subject to certain conditions.

Tax Deductions at Source in Israel

Israel Social Security

Social security payments are subject to a monthly ceiling of I.S. 43,240 (2014)
The top rates are:
Employer - 6.75%
Employee -12.0%
Self employed pay 9.82% for monthly income of up to IS 5,297, 16.23% on the excess up to IS 42,435.

Israel Tax Withholding

The tax withholding rates for payments to non-residents are:
Dividend - 20% /25%
Royalties - 25%
Interest - 15%/20%/25%

Israel Dates of filing Returns / Reporting and Payment

Tax due from an employee is deducted at source by his employer. The employer transfers the tax to the Income Tax on the 15th of the month for the preceding period. Employers who have a large number of employees report to the Tax Authorities once a month, while employers with a lesser number of employees submit their returns once every two months (thus, for example, a small employer will submit a return for January and January on March 15).

Self employed persons as well as limited companies, pay an advance to the Income Tax on the 15th of the month. Here, too, businesses that report once every two months on the 15th of the following month are differentiated from larger businesses that submit a return once a month.

Most of the advances for the self-employed/companies are determined by the Tax Authorities according to the figures in the annual return that the business submitted for the previous year. Advances for new businesses are fixed by the Tax Authorities according to the accepted percentage for the sector to which the business belongs.

The system of prepayment of taxes is usually based on a percentage of the total receipts of the business, regardless of the actual expenses that were incurred during the month.

Israel Amortization/Fixed Assets

Amortization on fixed assets may be deducted from taxable income. The rates of amortization allowable in Israel are as follows:
The Asset Amortization
Top grade stone buildings 4%
Top grade reinforced concrete buildings 4%
Second grade buildings with a less strong structure 4%
Sundry furniture 6%
Furniture for coffee bars, restaurants, etc. 12%
Sundry equipment 7%
Air-conditioners 10%
Machinery and equipment for a building 20%
Vehicles 15%
Trucks, pick-up trucks weighing over 3 tons 20%
Taxis, hire cars 20%
Driving school vehicles 20%
Computers 33%
Goodwill 10%
Professional literature 15%

Note The above rates are the basic rates. There are additional benefits for equipment operated on (2 and 3) shifts in industrial companies or hotels.

 

Tax Rates in the World

Afghanistan Tax Rates

Albania Tax Rates

Algeria Tax Rates

Angola Tax Rates

Argentina Tax Rates

Australia Tax Rates

Austria Tax Rates

 

 

Bangladesh Tax Rates

Brazil Tax Rates

Canada Income tax Rate

Canada Personal Tax

China Tax Rates

Colombia Tax Rates

Congo Tax Rates

Cyprus Tax Rates

Czech Republic Tax Rates

Ethiopia Tax Rates

Egypt Tax Rates

France Tax Rates

Finland Tax Rates

Germany Tax Rates

Ghana Tax Rates

Hong Kong Tax Rates

Hungary Tax Rates

India Income tax Rate

India TDS Rate

Ireland Tax Rates

Israel Tax Rates

Italy Tax Rates

Japan Tax Rates

Jamaica Tax Rates

Jersey Tax Rates

Jordan Tax Rates

Kazakhstan Tax Rates

Kenya Tax Rates

 

 

Korea Tax Rates

Lithuania Tax Rates

Malaysia Tax Rates

Malta Tax Rates

Mauritius Tax Rates

Mexico Tax Rates

Morocco Tax Rates

Myanmar (Burma) Taxes

Nepal Tax Rates

New Zealand Tax Rates

Netherlands Tax Rates

Nigeria Tax Rates

Pakistan Tax Rates

Panama Tax Rates

Philippines Tax Rates

Poland Tax Rates

Portugal Tax Rates

Romania Tax Rates

Income Tax Rate

Singapore Personal Tax

Serbia Tax Rates

Slovakia Tax Rates

Slovenia Tax Rates

South Africa Tax Rates

Spain Tax Rates

Sri Lanka Tax Rates

Sweden Tax Rates

Switzerland Tax Rates

Tanzania Tax Rates

 

 

Thailand Tax Rates

Turkey Tax Rates

Uganda Tax Rates

Ukraine Tax Rates

UK Tax Rates

UK Corporate Tax Rates

Tax Allowances in UK

USA Income Tax Rate

USA Standard Deduction

Vietnam Tax Rates

Zimbabwe Tax Rates

 
 

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap