Taxation of international executives
The rates following apply to Israeli residents as of 1 January 2020:
Type of insurance |
Paid by employer |
Paid by employee |
Total |
National insurance |
3.55% |
0.40% |
3.95% |
Health levy |
0.00% |
3.10% |
3.10% |
Total |
3.55% |
3.50% |
7.05% |
Type of insurance |
Paid by employer |
Paid by employee |
Total |
National insurance |
7.60% |
7.00% |
14.60% |
Health levy |
0.00% |
5.00% |
5.00% |
Total |
7.60% |
12.00% |
19.60% |
Employers are responsible for withholding employees’ National Insurance contributions from wages and salaries, and remitting these, together with the employers’ own contributions, to the National Insurance Institute. These obligations generally apply irrespective of the residency status of the employer and employees. A reduced rate is applied to employed non- residents (who are not from a country/jurisdiction having a valid social security treaty with Israel) at the following rates:
Type of insurance | Paid by employer | Paid by employee | Total |
National insurance | 0.59% | 0.04% | 0.63% |
Type of insurance | Paid by employer | Paid by employee | Total |
---|---|---|---|
National insurance | 2.65% | 0.87% | 3.52% |
Detailed provisions are laid down in the National Insurance Law for persons who derive income from more than one taxable source and for self-employed and non-employed persons.
Exemption from paying National Insurance contributions is given in various circumstances including where bi-national agreements are in force.
Are there any gift, wealth, estate, and/or inheritance taxes in Israel?
These do not apply in Israel.
None.
Are there real estate taxes in Israel?
Yes. Israel has both land appreciation taxation and purchase taxation upon buying real estate.
Are there sales and/or value-added taxes in Israel?
Yes, value-added tax is currently imposed in Israel at a rate of 17 percent.
Are there unemployment taxes in Israel?
No.
Are there additional taxes in Israel that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
None.
No requirement.
All information contained in this publication is summarized by KPMG Somekh Chaikin, the Israel member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on the Israel Tax Ordinance (New version) of 1961 as well as subsequent amendments; Income Tax Regulations (Salary from work rendered outside of Israel) 1982; Income Tax Regulations (Deductions for staying expenses of non-residents) 1979; Income Tax Regulations (Deductions for specific expenses) 1972; the Website of the Israeli National Insurance authorities.