New Israeli Tax Rates for 2014
Income Tax|Tax Rate|Corporate

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


The standard Israeli corporate income tax rate will be increased from 25% to 26.5%.


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%.


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%.


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%.


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

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