Last Updated on October 24, 2021
Israel Tax Authority – Rashut HaMisim.
The Israel Tax Authority – רשות המיסים is responsible for collecting personal income tax, V.A.T and customs taxes.
Income Tax for New Immigrants (Olim) & Returning Residents (Toshavim Hozrim)
The main income tax benefits for new immigrants and returning residents who became Israeli citizens from January 1st 2007 and thereafter, are as follows:
- 10 years exemption from paying tax on foreign-source income (i.e., income derived outside of Israel).
- 10 years exemption from declaring on foreign-source income which are exempted.
- 10 years exclusion from definition as an Israeli company resident – for a company established abroad and owned by an “Oleh” or a “Senior Returning Resident”.
- Option to be considered a foreign resident for taxation purposes, for one year from arrival.
- 3.5 years of entitlement to tax credit, with options of extension.
V.A.T – Value Added Tax
The current V.A.T rate in Israel is 17%
If you are self-employed and listed as an “Osek Patur” (a business with a tax exemption) and have declared earnings of less than NIS 79,482 (as of 1/2015) in any business year, your are not required to charge VAT. At the same time an Osek Patur may not reclaim Ma’am on business purchases. Read more…
Customs & Purchase Tax
The Customs and Purchase Tax Tariff is set by the Israel Tax Authority. The correct classification of goods is key to determining the precise customs and purchase tax rates. If you are importing goods for commercial purposes, or items that do not fit into the ‘personal imports‘ category, the Israel Tax Authority recommends using the services of a Customs Broker (Amil Meches – עמיל מכס) to handle the various aspects of the import.
Contact Information
ISRAEL TAX AUTHORITY
Hotline Countrywide
providing information by phone +972-2-5656400 or *4954
From 8:15 to 16:00
Email addresses here: https://taxes.gov.il/Pages/TaxesMoked.aspx
