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Israel - Overview and introduction

Israel - Overview and introduction

Taxation of international executives

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Israel city with number of houses and mosque with blue dome

Subsequent to a tax reform from 1 January 2003, tax has been imposed on a personal basis, such that every Israel resident will be charged a progressive tax on their worldwide income. Certain sources of income are subject to special tax rates and capital gains tax is payable on gains from the sale of certain assets.

A foreign resident is subject to tax on income produced or derived in Israel only.

The tax year for individuals is the calendar year.

The official currency of Israel is the Israeli New Shekel (ILS).

Herein, the host country/jurisdiction refers to the country/jurisdiction to which the employee is assigned. The home country/jurisdiction refers to the country/jurisdiction where the assignee lives when they are not on assignment.

Disclaimer

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.

Copyright

© 2020 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. All rights reserved. For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

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