Category Taxation in Israel

Israel Approves New Tax Changes

October 31, 2011 Taxation in Israel

Tax changes in IsraelTEL AVIV – The government of Israel is bowing to public pressure, and increasing tax rates on high earning individuals, while easing tax burdens for middle and low income earners.

On October 30th the Israeli cabinet approved several changes to the national tax system. The alterations are aimed at lowering the cost of living for middle and low income taxpayers, and supplementing any government revenue drops by raising tax rates applicable to high income individuals.

Under the proposed changes, individuals earning in excess of ILS 40 231 (approx USD 11 175) per month will see their income tax rate rise from 44 percent to 48 percent. Individuals with annual incomes exceeding ILS 1 million (approx USD 277 778) will also be levied with an additional 2 percent “high-earners tax”...

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