Accounting Outsourcing and
Tax compliance in Israel
Israel – Accounting Outsourcing and Tax Compliance
Isreal in facts
Corporate income tax (CIT) in Israel
Standard preferred enterpriseCompanies with more than 75% of foreign investment that work in the research and development in the development area “A” are called preferred enterprise. The CIT rate for such companies is reduced to 7,5%.
Special Preferred EnterpriseLegal entities need to have a qualifying investment program to obtain the Special Preferred Enterprise status. Companies with Special Preferred Enterprises status apply CIT rate of 5% for the activities in the development area “A” and 8% for the businesses outside the development area “A.”
Special Preferred Technology EnterpriseThe third special regime applies to the companies involved in the development of intellectual property on Israeli territory. Many qualification requirements and rules are allied to companies with special preferred technology Enterprise. The CIT rate for such companies is 6%.
Value-added Tax (VAT) in Israel
Personal Income tax (PIT) in Israel
Withholding tax in Israel
Payroll-Related Taxation in Israel
Employer’s national insurance contributionsEmployers pay national insurance contribution monthly; the payment is made on a progressive scale outlined below:
Non-employers pay national insurance contributions every month. The payment is made on the progressive scale outlined below: