Thank you for contacting us,
on of our stuff members will contact you soon!
Oops! Something went wrong while submitting the form.

Corporate Taxation

Corporate tax in Israel is set at 23% for 2023 and applies to both domestic and international companies with a presence in the country. Foreign companies are only liable for Israeli corporation tax on income accrued or earned in Israel, while Israeli-based companies are subject to Israeli corporation taxes on income accrued or earned in Israel and abroad. 

It is important to note that Israeli and international law, through agreements signed by the State of Israel, determine when income is assumed to have originated in Israel and when it did not. 

When starting or operating a business, entrepreneurs, business owners, and self-employed individuals must consider the advantages and disadvantages of each type of business entity, as different structures have different tax implications. As businesses grow, it is important to reassess how changes in entity type can affect taxes. This can be done through merging or splitting companies or assets, transferring assets from one legal entity to another, or fundamentally changing the legal entity through which the business is conducted.

Additional Information

Permanent establishment (PE)

Personal-service companies

Tax Rates

Tax on dividends

Withholding taxes