A new Jewish immigrant to Israel (or Oleh) is entitled to a reduction of almost 100% on your income tax for the first 18 months of your stay, followed by a significant reduction until 3.5 years after Aliyah (the Hebrew word for “the return to Israel”).
The tax system in Israel demands that Israelis pay tax on all sources of income, in Israel and abroad.
In 2008 Israel's corporate income tax rate is fixed at 27%, individual income tax rates are 10%-47% depending on your income.
There are reduced tax rates for passive income from abroad such as rents and interest.
Employees have their taxes deducted at the source by their employer, who then transfers the tax to the Income Tax Office on the 15th of the month for the preceding period. Employers who have a large number of employees report to the Tax Authorities once a month, while employers with a lesser number of employees submit their returns once every two months. As a self-employed worker you pay in advance to the Income Tax Office on the 15th of the month; the amount of tax payable is determined by the Tax Authorities according to your previous year’s income.
There is no local income tax in Israel and social security contributions (known in Israel as National Insurance) are included in direct taxation.
Update 4/07/2008
Keep more of your money when transferring funds overseas!
If you want to move money abroad, from Israel or to Israel for example, Fexco provides efficient and secure global bank to bank transfers and bespoke payment solutions for both business and personal clients.
Why Fexco
Fexco provides a secure international money transfer service online or by telephone with bank beating fx rates and low fees. Specialises in high-value transfers.
Main characteristics
Fexco will help you to keep your overseas money transfer costs to a minimum.
| Margin | 0.6% |
|---|---|
| Regulator | FCA |
| Fee | £10 < £5K or Free > £5k |
| Mini | £1K |
| Ccy | All (130 currencies, incl ‘exotics’) |
| Services | Repatriation of funds, Property, Regular payments, High Value payments, spot, online, telephone. |
Get an online quote today
When you are ready to make your transfer, John and his team will be available to help you with better rates and an unrivalled service to make sure your funds are delivered securely and speedily.