Tax Alert Israel: 2010 - 2016 Israel Tax Rates
Below is an overview of the Israeli Corporate, Dividend and Individual Tax rates for the years 2010 through 2016.
If the rates below remain unchanged it seems to be more beneficial to conduct business through an Israeli company and receive dividends rather than directly as an individual. In some years the difference can be as high as 2%, e.g., 2011.
|
Year |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
|
Corporate Tax |
25% |
24% |
23% |
22% |
21% |
20% |
18% |
|
Dividend Tax* |
18.75% |
19% |
19.25% |
19.5% |
19.75% |
20% |
20.5% |
|
Combined Tax |
43.75% |
43% |
42.25% |
41.5% |
40.75% |
40% |
38.5% |
|
Individual Tax |
45% |
45% |
44% |
43% |
42% |
41% |
39% |
*For shareholders holding 10% or more. Dividend tax is 20% for shareholders holding less than 10% of the company's shares.