- Corporate income tax rate (2016): 25%. New regulation is to decrease it to 24% (2017) and 23% (2018).
- Branch tax rate (2016): 25% – see above.
- Capital gains tax rate (2016): 25% – see above.
- Value added tax rate: 17%.
- Tax rates for Individuals: 10%-47% (the maximum rate will be applied for monthly income exceeding approx. 11,000 USD).
- An additional individuals surtax of 3% (until a maximum rate of 50%) shall be applicable for monthly income exceeding approx. 14,000 USD).
- Dividends paid by Israeli company to another Israeli company are tax exempt. Dividends paid to Israeli individuals or foreign residents (both individuals and companies) are subject to a withholding tax of 25%, or 30% if the shareholder holds 10% of the shares or more. The withholding tax rates may be reduced when a valid tax treaty exists.
- A foreign individual or foreign company would be subject to tax on dividends received from an Israeli corporation, as an Israeli individual, unless a valid tax treaty exists.
- Rate of Inflation over the last few years: 0%-3%.
