Business Practices |
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
Standards
Business Practices
- General information
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Doing Business with Israel
Guide to Israel
- Opening hours and days
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The weekend in Israel is on Friday and Saturday. Offices close at 1700 hrs in the evening.
Public holidays
| Purim (carnival) |
March/April |
| Pesah (Easter) |
April |
| Independence Day of Israel |
May |
| Shavouth |
May/June |
| Rosh Hashana (New Year) |
September/October |
| Yom Kipour (Day of Atonement) |
October |
| Souccoth (Festival of Huts) |
October |
| Simhat Torah, start of the reading of the Torah |
October |
| Hanukkah (Festival of Lights) |
End November/December |
Periods when companies usually close
| Days of Jewish Festivals |
|
| Period of Pessah (Easter) |
April |
| Period of Souccoth (Festival of Huts) |
October |
Accounting Rules
- Tax year
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The financial year starts from 1 January and ends on 31 December of the same year.
- Accounting standards
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The Israeli Accounting Standards. Accounting in Israel started with the help of the American Institute called "The American Institute of Certified Public Accountants "(AICPA). The accounting practices in these countries are similar to American practices.
- Accounting regulation bodies
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IASB
- Accounting reports
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The financial accounts include a balance sheet, an income statement, a cash flow account and an owner's equity account.
- Publication requirements
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- Professional accountancy bodies
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ICPA
IFAC
- Certification and auditing
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Audit is carried out by external auditors in the company.KPMG, Ernst and Young, Pricewaterhouse Coopers, Deloitte.
- Accounting news
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Tax Rates
Consumption taxes
- Nature of the tax
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VAT - (MA'AM in Hewbrew)
- Tax rate
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15.50%
- Reduced tax rate
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Export of products and certain services is not subjected to VAT or is subjected to nil rate.
- Other consumption taxes
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Tax on Capital gains from real-estate is applicable on the sale of the real estate.
Purchase tax is deducted on some imports or local industrial production.
Corporate taxes
- Company tax
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26%
- Tax rate for foreign companies
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The resident companies are taxed on their total income, while the non-resident companies are taxed on incomes from activities in Israel.
- Capital gains taxation
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2 rates : 25% / 34%
- Main allowable deductions and tax credit
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Deduction are granted when the company invests in scientific research in the fields of industry, agriculture, transport or energy. A deduction is possible at the time of investments in oil companies.
- Other corporate taxes
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Individual taxes
Tax rate
The rate is spread over 5 sections.: Tax schedule, monthly returns in shekels. |
progressive from 10% to 46% |
| From ILS 1 to 55,080 |
10% |
| From ILS 55,081 to 97,920 |
15% |
| From ILS 97,921 to 147,000 |
23% |
| From ILS 147,001 to 211,200 |
30% |
| From ILS 211,201 to 454,680 |
34% |
| More than ILS 454,680 |
46% |
- Allowable deductions and tax credit
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Tax deductions are granted to residents of priority areas and far from the center of the country.
- Special expatriate tax regime
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Certain expatriates are subjected to a special system with a maximum rate of 25%, other follow the normal system. Foreign residents are exempted from taxes on capital gains resulting from share investments in the Tel-Aviv Stock Exchange.
Legal Framework
- Independence of justice
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The judicial power is largely independent in Israel and the guarantees of procedure are generally respected.
- Equal treatment of nationals and foreigners
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Foreign nationals can be expected to benefit from a equitable legal process.
- The language of justice
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The legal language of the country is Hebrew but Arabic is also used officially by the Arab minorities of the country .
- Recourse to an interpreter
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Yes
- Sources of the law and legal similarities
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Israel does not have written constitution. Certain functions of the constitution are fulfilled by Declaration of Establishment (1948), the Basic laws of the parliament and the Israeli citizenship law. The legal system is a blend of Common English Law, British Mandate Regulations and Jewish Christian and Muslim rights as far as the personal status is concerned.Israel no longer accepts the compulsory jurisdiction of ICJ.
- Checking national laws online
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Lexadin, the world law guide
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Last updates: November 2009