Effective as of January 1, 2017: Significant Changes in Israeli Tax Law
With effect as of January 1, 2017 there are some significant changes in the field of Israeli taxation, which will have an influence for individuals, trusts and corporations. The Israeli corporate tax rate is reduced to 24 % as of January 1, 2017, whereas the surtax levied on high income individuals is increased to 3 % from 2 %. In addition there are some significant provisions enacted with respect to the taxation of cash withdrawals or the use of corporate assets by substantive shareholders. Furthermore, the new law contains a provision for the taxation pertaining to so called “wallet companies”, companies owned by individuals who provide services, and finally a beneficial temporary order with a reduced tax rate for dividend distributions, which will be made until September 30, 2017.