Israel
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 14 | 67.65 |
| Corporate Taxes | 17 | 58.99 |
| Individual Taxes | 29 | 49.13 |
| Consumption Taxes | 12 | 74.35 |
| Property Taxes | 10 | 69.25 |
| Crossborder Taxes | 10 | 83.21 |
Israel ranks 14th overall on the 2021 International Tax Competitiveness Index, 13 spots better than in 2020, making the most improvement.
Strengths
- Net operating losses can be carried forward indefinitely.
- The VAT rate is relatively low at 17 percent and applies to a broad base.
- Israel does not levy wealth or estate taxes.
Weaknesses
- On average, compliance with the corporate code takes 110 hours (compared to an OECD average of 42 hours).
- The steep progressivity of Israel's taxes on labor leads to efficiency costs.
- Israel has a relatively narrow tax treaty network, with 58 countries (the OECD average is 75).
Learn more about the tax system in Israel