Worldwide Taxation
Israeli residents are taxed on income from all sources worldwide. Foreign employment income is taxed at marginal rates. Foreign business income is taxed at marginal rates with foreign expense deductions. Foreign investment income (interest, dividends, capital gains) is taxed at the applicable Israeli rates.
Foreign Tax Credit
Tax paid to a foreign country on the same income can be credited against the Israeli tax, up to the Israeli tax amount on that income. Excess credits can be carried forward for 5 years. The credit is calculated per 'basket' of income (business, passive, capital gains).
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.