Israel

Israel's Rankings
CategoryRankScore
Overall Rank1467.65
Corporate Taxes1758.99
Individual Taxes2949.13
Consumption Taxes1274.35
Property Taxes1069.25
Crossborder Taxes1083.21

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

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