Israel Tax Highlights - 2016

Israeli tax law is changing regularly. There were various amendments to the Israeli Tax Code, including the reduction of tax rates. The following summarizes Israeli tax rates and other tax information for 2016.

For past years, see: Israel Tax Highlights.

Corporate Tax

The Israeli Parliament published the Law for the Amendment of the Israeli Tax Ordinance (Amendment 216), on 5 January 2016, which reduced the corporate income tax rate from 26.5% to 25%. The reduction entered into force on 1 January 2016 and the 25% corporate tax rate will apply to income generated from that day onwards.

"Preferred Income" derived by certain industrial and technology enterprises, in accordance with the Law for Encouragement of Capital Investments, is liable to reduced corporate tax 16% in the center of Israel, or 9% in development area A, without any time limit.