Dr. Avi Nov, Adv.
August, 2013
The Israeli parliament adopted on 30 July 2013, the Budget Law 2013-2014 and the Economic Arrangements Law. The following is a summary of the main changes to the Israeli tax rates and rules that will apply from 1 January 2014.
See also:
The Israeli 2013 Economic Arrangements Bill
Israel Tax Reform for 2013-2014
(A) Israeli income tax Rates - Individuals
See: Israel tax highlights - 2014
(B) Israeli Income Tax Rates - Corporations
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The standard Israeli corporate income tax rate will be increased from 25% to 26.5%. |
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The lower corporate income tax rate, under the Law for the Encouragement of Capital Investment 1959 for certain producing companies, will be increased from 12.5% to 16%. |
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Benefitting income of companies under the Law for the Encouragement of Capital Investment in the high-priority development zones will be taxed at the rate of 9%. |
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The dividend withholding tax rates on distributions of profits sourced from "benefitting income" under the Law of Encouragement Capital Investment 1959 will be increased from 15% to 20%. |
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Capital gains arising from a revaluation of an asset, which subsequently is a source of a dividend distribution, must be included in the taxable income of the distributing company. |
Dr. Avi Nov Law Offices, Israeli & international tax law
*This article is intended for informative purposes only and is in no way to be construed as tax advice or a legal opinion
