Taxes

Everything you need to know before opening the shutters: from registration with the authorities, licensing and taxation to recruiting employees and choosing the right field — this is how you will establish a business in the center of the country on a stable basis and with high chances of success.

With the submission of the Finance Ministry's arbitration committee recommendations, most headlines focused on the bad news for pensioners. However, an in-depth analysis of the numbers and data reveals a much more complex picture. When will the changes take effect, what is the "tax trap" that will be abolished, and what are the three positive pieces of news that no one is talking about?

Shay Aharonovich warns that the compensation fund is about to run out, and revealed that the Tax Authority is examining a series of dramatic moves, including imposing property tax, taxing advanced study funds (karanot hishtalmut), and a mandatory reporting requirement on rent that alone would bring in about 1.5 billion shekels a year.

New regulatory initiatives in Israel are making it easier to handle crypto, but there is no automatic approval for transferring profits to a bank account. Transparency and complete documentation remain the key requirements for banks.

After winning the grand finale of Power Couple and taking home a cash prize of hundreds of thousands of shekels, the couple will have to part with a significant portion of the amount due to Israel's tax laws.

Ronit Ashed Levi, CEO of Africa Israel Residences, identified the three main barriers to lowering housing costs in Israel: taxation, bureaucracy, and uncertainty.

Startup Entitle sold its intellectual property to its parent company BeyondTrust for 124 million shekels. The company is expected to pay approximately 29 million shekels in taxes on the transfer.

Senior venture capital investor Oren Zeev criticizes the trend of incorporating startups in Israel, warning that choosing the US (Delaware) over Israel can save founders millions in taxes and avoid critical regulatory risks.

The classification is determined by turnover, and profit remains outside the calculation. With private clients, the exempt status leaves more in the pocket, while with businesses, the licensed status allows for input tax recovery.

Creating a digital currency has become simple and inexpensive, but the resulting profits are now firmly on the authorities' radar. South Korea is leading the way in tracking unreported crypto activity to ensure tax compliance.

Employees who finish a period of employment and receive large grants at once can use a special mechanism that will prevent the payment of a marginal tax of up to 50 percent, but one mistake in planning could cost dearly.

Ending employment is sometimes accompanied by receiving a retirement grant or a large sum of money. Apparently, this is money subject to tax of up to 50%, but under certain conditions you can save tens of thousands of shekels net. This is how the "tax spreading" method works.

Two credit points for 36 months are worth up to 5,808 shekels annually, but many discharged soldiers fail to utilize them because their initial income is below the tax threshold. Significant overpayments often occur due to lack of tax coordination between multiple jobs, but these funds can be reclaimed for up to six years.

Selling shares after moving between countries can lead to complex tax consequences. The Israeli Tax Authority considers not only the exit date but the entire history of asset ownership, including periods of residency and tax exemptions.

For every shekel deposited into pension savings, the state returns a portion through two completely different mechanisms: a credit (zikuy) under Section 45a, which reduces the tax itself, and a deduction (nikuy) under Section 47, which reduces the taxable income. The guide explains the difference, shows a full calculation of how much a self-employed person saves on an income of 280,000 shekels...

The Ministry of Finance is promoting a series of tax measures in the automotive sector for the post-election period to address the state budget deficit. The regulations are expected to focus on alternative-propulsion vehicles, which are projected to significantly reduce state fuel tax revenues.

Those planning to work temporarily during the election period will benefit from a special tax arrangement: how much will be withheld, who is exempt, and why tax coordination is not required.

At the beginning of the month, it was reported that the Tax Authority is examining a change in the taxation model for options for high-tech employees, and the head of the Tax Authority expressed support for the initiative. However, it now turns out that senior officials in the Ministry of Finance are strongly opposed to the initiative: "The last thing we need right now is to burden high-tech...

Henry Shaul Schwarzbaum requested that profits from the sale of Applied Materials shares, received via options, be taxed at a rate of 25%. However, the District Court rejected his claim, ruling that the marginal tax rate must apply, as demanded by the tax assessor. The judge noted that Schwarzbaum benefited from the tax deferral under the agreement and cannot now disavow its terms.

The US Treasury Department has introduced new tax regulations aimed at preventing illegal immigrants from accessing taxpayer-funded benefits. Treasury Secretary Scott Bessent stated that the move is expected to save $3 billion, with nearly one million individuals potentially losing eligibility for tax refunds.

An investment apartment can provide rent and appreciation, but requires high capital, maintenance, and taxation. Investing in a stock portfolio provides liquidity and good returns over time, but taxation on profits is higher.

As AI company valuations soar, concerns over environmental impact and lack of job creation have prompted US states to impose new taxes and construction bans on data centers.

The winner of the last season of "Big Brother" arrived at the offices of Reshet 13 to collect the winning prize. However, in the State of Israel, the final profit is much lower than the amounts promised on the television screen. So how much did Rubin get rich by?

China is set to impose its first tax on lithium-ion batteries and solar cells in a decade. Starting in September 2026, a 2% purchase tax will be applied, rising to 4% a year later, potentially impacting global prices for energy storage and electric vehicles.

In June 2026, investors purchased 1,392 apartments—a 64% jump year-on-year, though this is skewed by the low baseline during the war with Iran. Meanwhile, the investor share of the market remains stable, and net balances remain negative.

Joey Schwebel, one of the owners of the Zara group in Israel, will be liable for tax on dividends for the years 2015-2017. The court ruled that the funds were not loans but withdrawals by a controlling shareholder. The judge noted: "If the appellant does not separate the companies and their interests from his own, there is no reason for the respondent to act otherwise."

The Institute updates that today is the deadline for monthly reporting and payment for self-employed individuals and employers, and warns against severe financial sanctions and linkage for those who do not settle their debt on time.

Purchase tax, lawyer fees, brokerage, appraisal, renovation, and moving add 155,000–185,000 shekels above the contract price, and for an additional apartment, the tax alone reaches 200,000 shekels.

A training fund (Keren Hishtalmut) offers particularly advantageous tax benefits, but they are subject to an annual deposit ceiling of about 20.5 thousand shekels. However, it sometimes has hidden advantages that make depositing even larger sums particularly worthwhile. Retirement experts answer critical questions about retirement in a new column.

The 20% tax bracket has been expanded from 16,150 to 19,000 shekels per month, and the 31% bracket up to 25,100 shekels, a change resulting in monthly savings of up to 420 shekels.

The good luck streak of the New York City mayor Zohran Mamdani is now meeting reality, and he is dealing with dissatisfaction in his political environment, against the city's economic elite - and also against the Jewish community.

Israel's government deficit has dropped to 3.3% of GDP, a surprise amid the ongoing war. The Treasury has accumulated a 19 billion shekel safety cushion but fears disclosing these figures.

The Israel Tax Authority is considering a review of the 'trapped profits' law, which imposes a tax burden on small and medium-sized businesses while exempting large corporations.

Globes has learned that a number of companies have formulated a joint appeal to the government, aiming to change procedures and reduce payments for office land. The goal: to incentivize construction, due to the crisis in the high-tech sector and high interest rates.

The nine players at the World Series of Poker final table collectively won $30.25 million. However, more than $12.2 million of that is expected to be paid out to tax authorities.

Mid-month is the deadline for VAT, income tax, and National Insurance reporting. Due to the weekend, deadlines have been adjusted; timely filing is essential to avoid penalties and maintain social benefits.

The Ministry of Finance and the Tax Authority are considering increasing taxes on employee stock options in the high-tech sector as part of the 2027 budget, while proposing a reduction in wage taxes.

According to a Wall Street Journal report, Mayor Zohran Mamdani fired dozens of senior executives and tycoons this week from the 'Mayor's Fund to Advance New York City.' Officials note that following his actions, other companies are eyeing locations outside of New York.

A new study by Payoneer Workforce Management reveals that Tel Aviv is among the most expensive global cities for hiring, while offering employees one of the lowest net salaries.

A letter from the Tax Authority often causes concern, but it does not always indicate a violation. It is essential to remain calm, carefully review the content, check deadlines, and avoid ignoring the request to prevent potential fines.

Beny Steinmetz and his family are waging a legal battle against the Netanya Real Estate Taxation Director's decision to impose a capital gains tax of over 4 million shekels on the sale of an Arsuf villa. The main argument: the corporate tax assessment stems from a misinterpretation.

The Israel Tax Authority's voluntary disclosure procedure, offering criminal immunity for reporting undeclared assets, ends in late August. With only 877 million shekels declared so far, the response has fallen short of official expectations.

The Ministry of Finance is planning reforms to pension contributions and investment accounts. While officially aimed at increasing net pay, experts warn that the true motive may be to boost state tax revenues.

The apartment-moving season is in full swing, rent is rising, and apartment landlords need to check whether they must report to the Tax Authority on rental income and, if so, which track to choose. Globes has compiled for you all the questions, options, and relevant data.

121 local authorities have requested exceptional municipal tax increases for 2027, yet Prime Minister Benjamin Netanyahu has failed to sign the necessary guidelines. Meanwhile, Wall Street is reeling from Big Tech earnings reports, Elon Musk has lost his trillionaire status, and in Israel, a violent attack on the News 12 building highlights the ongoing degradation of public discourse.

Tax Authority Director Shay Aharonovich is considering raising the tax on employee options from 25% to 30%. Critics warn that this move could drive away talent and harm the high-tech sector.

Municipal property tax (Arnona) is set to rise automatically by 3.05% in 2027, but many local authorities have requested additional exceptional increases from the Ministry of Interior, reaching as high as 33%. The business sector has announced its intention to fight these measures.

The Ministry of Finance is exploring a reduction in mandatory pension contributions to increase net salaries and cover the war-induced budget deficit. Experts warn this could jeopardize the financial security of future retirees.

The public enjoys banks’ entertaining campaigns, but is left with the mortgage and the interest on deposits. Will new reforms and the entry of competitors into the field lead to a turnaround? Globes brand index.

Yaron Zelekha claims that the Ministry of Finance tends to choose raising taxes again and again as a solution to budgetary difficulties, instead of promoting competition, reducing regulation, and streamlining government spending | Column