Tax Consultations in Israel
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 charges for water use, garbage collection, and other utilities.
You as a business owner who is interested in starting a business in Israel, and about this you can read: https://auditing.co.il/en/bookkeeping-services/tax-consultations/ , will be important to know that the leading place among the taxes is the income tax. This concept combines several taxes: corporate tax, tax on profits from the sale of property, income tax on personal income.
Corporate income tax is levied at a rate of 36%. Profit is defined as the difference between the income received, and the expenses associated with the receipt of this income. And it is determined based on activity for the year. A fiscal year, which coincides with the calendar year, is established. Since the calculation of the actual profit is carried out yearly, then during the year advance payment is made monthly or once in two months, which goes to the fund …