Tax Reform

The unified investment account reform promoted by the Ministry of Finance is expected to include retail investors who trade securities independently. The implication: the possibility of tax deferral and even a full exemption from capital gains tax under certain conditions, subject to a deposit ceiling of 200,000 shekels.

The reform promoted by the Tax Authority is intended to fight fictitious invoices by collecting VAT in real-time, instead of the periodic reporting practiced today. The Institute of Certified Public Accountants warns of damage to the cash flow of small businesses and the passing of costs onto consumers. At the same time, the question arises as to how input VAT offsetting will be carried out and...

The Tax Authority is promoting a smart system where businesses will transfer VAT to the state at the moment of payment, aiming to reduce bureaucracy and combat fictitious invoices. The move is expected to inject billions into public coffers. Meanwhile, the Treasury warns that VAT may rise to 19% in 2027.

The undistributed profits reform, which generated 15–20 billion shekels in revenue, is facing scrutiny due to market distortions in the income-producing real estate sector. The Tax Authority is considering targeted adjustments as part of the upcoming Economic Arrangements Law.