Israel

Israel's Rankings
CategoryRankScore
Overall Rank3151.95
Corporate Taxes2749.9
Individual Taxes3634.02
Consumption Taxes1374.78
Property Taxes1566.59
International Tax Rules3355.5

Israel ranks 31st overall on the 2019 International Tax Competitiveness Index, one spot worse than in 2018.


Strengths

  • Israel has a below-average corporate tax rate of 23 percent (OECD average is 23.6 percent) and allows net operating losses to be carried forward indefinitely.
  • The VAT rate is relatively low at 17 percent and applies to a broad base.
  • Israel does not levy net wealth or estate taxes.

Weaknesses

  • On average, compliance with the corporate code takes 110 hours (compared to an OECD average of 42 hours).
  • The progressivity of Israel's taxes on labor means that it costs the economy $1.70 for every extra dollar of revenue that Israel raises from labor taxes.
  • Israel has a worldwide tax system and a relatively narrow tax treaty network, with 56 countries.

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