Shmuel Brodetsky, C.P.A., which you can find at the following link: https://auditing.co.il/en/ , provides consulting services on taxation in Israel. We will tell you about the main taxes in Israel and the benefits and privileges available to those who want to start a business in Israel (https://auditing.co.il/en/bookkeeping-services/business-in-israel-for-foreigners/ ) or to new immigrants.
Types of taxes in Israel
We can group taxes in Israel into four main groups.
- Direct taxes are taxes paid on income and on real estate. Among these taxes is corporate income tax, profit tax on the sale of property, tax on owners of undeveloped land plots, land purchase tax.
- The main indirect tax is the value-added tax. This group of taxes also includes import duties and purchase tax.
- The social insurance fund comprises employer contributions from employees’ wages, part of the employees’ own salaries, and part of the income of the private entrepreneur.
- Municipal taxes include