Industries
This category should begin with a fuller overview of Industries in Israel rather than a short label and a grid of links.
Tech
Israel's thriving tech sector benefits from a favorable tax regime. This section covers tax incentives for tech companies — including the preferred technology enterprise (12% or 7.5% tax rate), IP box benefits, R&D expense deductions, employee stock option plans (Section 102), and tax considerations for mergers, acquisitions, and exit events in the tech world.
5 articlesConstruction
The real estate and construction industry in Israel has sector-specific tax rules. This section covers VAT for contractors and developers, tax treatment of construction projects, profits from apartment sales by building companies, the special rules for combination transactions (עסקאות קומבינציה), and the tax considerations unique to this industry.
5 articlesFinancial Services
Financial institutions in Israel — banks, insurance companies, and investment houses — face a unique tax landscape. This section covers the payroll tax on financial institutions (מס שכר), VAT exemptions for financial services, taxation of financial instruments and derivatives, regulatory reporting requirements, and the distinct treatment of insurance company reserves.
5 articlesHealthcare
Healthcare providers in Israel operate under specific tax and VAT rules. Medical services by licensed practitioners are generally VAT-exempt, while other health-related services may not be. This section covers the tax treatment of medical practices, clinics, hospitals, pharmaceutical companies, and medical device firms, including deductions for medical equipment and R&D.
5 articlesAgriculture
The agricultural sector in Israel receives special tax treatment. Farmers and agricultural cooperatives benefit from favorable depreciation rates on farming equipment, special VAT rules for agricultural produce, income averaging provisions that smooth out volatile crop yields, water and land use tax considerations, and various government subsidies and their tax implications.
5 articlesTourism
Israel's tourism industry enjoys several tax incentives designed to promote the sector. Hotels and tour operators may benefit from reduced VAT rates on certain services, special investment grants in tourism development areas, tax benefits for incoming tourism, and specific rules for tip income and seasonal employment in the hospitality sector.
5 articlesEducation
Educational institutions in Israel — schools, universities, yeshivot, and private tutoring businesses — have specific tax and VAT rules. Many educational services are VAT-exempt, while educational institutions organized as non-profits enjoy income tax exemptions. This section covers the tax landscape for education providers and the deductions available to education-sector employees.
5 articlesMedia
Media and entertainment businesses in Israel — film production, broadcasting, publishing, digital content, and advertising — have specific tax considerations. This section covers production incentives and grants, the tax treatment of intellectual property and royalties, VAT on digital content and advertising services, and the unique deduction rules for creative professionals.
5 articlesEnergy
Israel's energy sector — including oil and gas exploration, renewable energy (solar and wind), and electricity generation — has specialized tax rules. This section covers the taxation of petroleum profits, tax incentives for renewable energy investments, carbon tax considerations, depreciation rules for energy infrastructure, and special levies on natural resource extraction.
5 articlesRetail
Retail businesses in Israel deal with day-to-day VAT compliance, employee payroll obligations, and inventory management for tax purposes. This section covers VAT invoicing requirements for retailers, the tax treatment of inventory write-offs and shrinkage, e-commerce tax obligations for online sellers, and common tax issues facing small and medium retail operations.
5 articlesTransport
Transportation companies in Israel — including trucking, shipping, airlines, and ride-sharing services — face sector-specific tax rules. This section covers vehicle depreciation and expense deductions, fuel tax and environmental levies, VAT on international transport services, taxation of cross-border transportation, and the tax implications for drivers in the platform economy.
5 articlesDefense
Israel's defense industry has unique tax characteristics due to its strategic importance. This section covers tax incentives for defense exports, the treatment of classified R&D expenditures, VAT on defense contracts, employment tax considerations for security-cleared workers, and the interaction between defense industry grants and corporate tax calculations.
5 articles