Israeli Tax Rates at a Glance – 2014
* Regular company tax rate: 25%
* Regular dividend tax rate: 30%-32% for 10%-or-more shareholders, 25%-27% for other shareholders
* Personal income tax rates: 10% – 50%
* Personal national insurance (social security) tax rates – up to 16.23% on 42,435 per month; none on dividends or capital gains
*VAT standard rate 17%
* VAT Exempt Dealer maximum annual revenue: NIS 77,993
* 10 year Israeli tax exemption on income and capital gains derived outside Israel by new residents and returning residents (lived abroad 10 years) who arrived after January 1, 2007.
* Special tax rates under Israel‘s tax treaties with over 50 other countries
* Special tax breaks under domestic Israel law for: foreign resident investors, trust owned vehicles (TOV‘s), privileged enterprises, approves rental buildings, oil exploration and production, movie production.
*Prefered income derived by prefered industrial and tech enterprises pay reduced company tax of 7% in development area A, elsewhere in Israel 12.5%, without time limit. Dividends taxed at 15%.
*Real Estate acquisition tax rates now range up to 7% generally.
*Second & Third home sale up May 5, 2013 exempt from land appreciation tax if the sale price is up to NIS 2.2 million eacc.
* Deadline for 2012 income tax returns: companies – May 31, 2012; most other taxpayers – April 30, 2012. Time extensions are obtainable.
* Deadline for half yearly personal capital gains tax returns if no Israeli tax is withheld at source: January 31 and July 31- namely one month after the end of each half year.
* Deadline for trusts in Israel and abroad regarding 2012: April 30, 2013 unless extension obtained.