Corporate Tax
This category should begin with a fuller overview of Corporate Tax in Israel rather than a short label and a grid of links.
Corporate Tax Basics
Companies incorporated in Israel are subject to corporate tax at a flat rate of 23%. This section covers the fundamentals — how corporate income is calculated, the relationship between corporate tax and dividend tax, tax obligations when forming a company, and the key differences between corporate and individual taxation.
5 articlesDeductions
Israeli companies can deduct legitimate business expenses to reduce their taxable income. Learn about deductible expenses — salaries, rent, professional services, marketing, travel — as well as non-deductible items, documentation requirements, and the rules for mixed-use expenses that serve both business and personal purposes.
5 articlesDepreciation
Depreciation allows Israeli companies to spread the cost of assets over their useful life for tax purposes. Learn about the prescribed depreciation rates for different asset categories (buildings, vehicles, equipment, software), accelerated depreciation options, and how depreciation affects your company's taxable income.
5 articlesDistributions
When a company distributes profits to shareholders, the distribution is subject to dividend tax — typically 25% for most shareholders, or 30% for controlling shareholders. Learn about the different forms of distribution (cash dividends, stock dividends, deemed distributions), withholding obligations, and tax-efficient distribution strategies.
5 articlesRestructuring
Israeli tax law provides frameworks for tax-neutral corporate restructuring — including mergers, splits, share swaps, and asset transfers between related companies. Understand the conditions for qualifying, the tax-free reorganization provisions under Part E2 of the Income Tax Ordinance, and the compliance requirements during and after a restructuring.
5 articlesGroup Taxation
Groups of related companies in Israel face special tax rules regarding inter-company transactions, transfer pricing, consolidated reporting, and loss utilization. This section explains the tax treatment of parent-subsidiary relationships, brother-sister companies, and how the Tax Authority scrutinizes transactions between related parties.
5 articlesIncentives
Israel offers generous tax incentives for qualifying companies — especially those with technological enterprises. The Innovation Authority benefits, preferred enterprise and special preferred enterprise tracks under the Investment Encouragement Law, reduced tax rates for IP income, and R&D grants can significantly lower effective corporate tax rates.
5 articlesCompliance
Israeli companies must meet various compliance obligations — annual tax return filing, advance payment schedules, bookkeeping requirements, and information reporting. This section details the key deadlines, required forms, record-keeping standards, and penalties for non-compliance that every company should be aware of.
5 articlesSpecific Entities
Different types of legal entities in Israel are taxed under different rules. This section covers the taxation of cooperatives, non-profit organizations (amutot), public benefit companies, kibbutzim, moshavim, and foreign-registered companies operating in Israel — each with its own rates, exemptions, and filing requirements.
5 articlesStartups
Israeli startups benefit from a uniquely supportive tax environment. This section covers tax incentives for R&D spending, the Angel Law tax benefits for investors, employee stock option plans (Section 102), innovation grants, the preferred technology enterprise regime, and practical tax planning tips for early-stage companies.
5 articlesAccounting
Corporate tax calculations in Israel are based on financial accounting records, with specific adjustments required by tax law. This section explains the relationship between accounting standards (Israeli GAAP and IFRS) and taxable income, common book-to-tax adjustments, and the bookkeeping obligations companies must follow.
5 articles