Israel
Israel: 1 company type, its taxes, banking and business environment, and what it is known for.
Forming a company
Company types in Israel
The form a founder can choose here, each with its own figures. Open one for its sources.
What it is known for
Where Israel is in the worldโs top 10 on a measure anyone can check, the best rank first. Only the top is shown; a low rank is never stated.
- Worldโs1stResearch and technology Research and development spending6.35% of GDP of 78 economies ยท 2023 World Bank, World Development Indicators See the top 10
- Worldโs6thKnowledge-intensive economy Economic Complexity Index1.33 of 142 economies ยท 2024 Harvard Growth Lab, Atlas of Economic Complexity (CC0) See the top 10
- Worldโs7thDigital services ICT service exportsUS$58.6 bn of 133 economies ยท 2025 World Bank, World Development Indicators See the top 10
A rank is among everything the source reports for that year, so it moves when the source adds or drops economies. Exports include goods passing through for re-export. Nothing here is a recommendation.
Doing business here
Business accounts
Providers whose own published list of countries names Israel. A listing means a company formed here may apply, not that it will be accepted.
Not in our records No provider's country list has been read for Israel.
EU listings
Two lists a bank checks when it opens an account for a company or its owner.
- EU high-risk third countries (AML)
- Not listed
- EU non-cooperative jurisdictions for tax purposes
- Not listedOfficial EUR-Lex, 52026XG01465, Annex I as of 2026-02-17
Official sites
The authoritiesโ own sites for Israel: where to register, file and check.
Blocs and agreements
The trade arrangements Israel belongs to, as each arrangementโs own texts state them: since when, and what each covers. What a membership means for a business is for you to judge.
None of the 36 arrangements we hold lists Israel as a member.
Regional and customs arrangements only, 36 of them; bilateral trade agreements are not yet in our records.
Tax
Company tax
Tax, and what the company owes the registry each year.
- Corporate income tax
- 23%
- Distributions
- Not in our records
- Audit
- Not in our records
- Small-company relief
- Not in our records
- Annual obligations
- Not in our records
- Annual registry fee
- ILS 1,777Official The registry or ministry page as of 2026-10-10
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1,777 ... ืืืจื ืฉื ืชืืช ... 1,338 ... ืืืจื ืฉื ืชืืช ืืืคืืชืช
VAT
The tax on what the company sells in Israel, and when it must register, as the tax authority states it.
- Standard rate
- 18%
The rate rose from 17% to 18% for transactions whose tax point falls on or after 1 January 2025.
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ืืื ืืืื ื' ืืืช ืชืฉืค"ื, 01 ืืื ืืืจ 2025 ืืฉืชื ื ืฉืืขืืจ ืืืข"ื ืืืืื ืขื ืขืกืงื ืืืฉืจืื ืืขื ืืืื ืืืืื ื17% ื 18%
- Other rates
- Not stated
- Registration threshold
- ILS 122,833 ยท about โฌ35,372
expected annual turnover for registration as an exempt dealer (osek patur); calendar year
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ืืืืืจ ืืขืกืงืืืช ืืฉื ืชื ืืฆืคืื ืื ืืขืื ืขื ืืกืืื ืืงืืืข ืืืืชื ืฉื ื, ืืคื ืฉืงืืืข ืืืืจืืืช ืืืง ืืืข"ื ืืขื ืืื ืขืืกืง ืคืืืจ (ืืฉื ืช 2026 โ 122,833 โช).
- A foreign company
- See the note
The Israel Tax Authority pages read set the exempt-dealer limit and the rate but state no rule for a business with no establishment in Israel, so the non-resident answers are left unrecorded.
- Tax authority
- Registration page read 2026-10-22
Tax calendar
When the main returns and payments fall due in Israel, tax year 2025 (annual returns filed 2026); VAT and advances 2026, as the tax authority states it.
- Corporate tax return
- Set each year by decree ยท each year
Form 1214, tax year 2025: companies, non-profits and controlling shareholders obliged to file do so by 31.7.2026. Set each year (extensions are announced separately).
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ืืืจืืช, ืืื"ืจืื ืืืขืื ืฉืืืื ืืืืืืื ืืืืฉืช ืื"ื - ืืืืฉื ืขื 31.7.2026.
- Corporate tax, final payment
- Not in our records
gov.il/he/service/reporting-and-payment-annual-tax-report-2025-companies inaccessible when checked
- Corporate tax, instalments
- Day 19 of the following month ยท each month
Income-tax advance-payment (mikdamot) report filed online by the 19th at 18:30 counts as on time. The page does not state the period or the paper deadline (15th); frequency (monthly or bi-monthly) varies by taxpayer and is not stated here; 'monthly' is an assumption to verify. Applies to all income-tax advance payers.
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ืืืืื ืฉืืืืฉ ืขื ื-19 ืืืืืฉ ืืฉืขื 18:30 - ืืืืฉื ืืืืื ืืืืขื.
- Personal income-tax return
- Set each year by decree ยท each year
Form 1301, tax year 2025: 29.5.2026 for non-online filers, 30.6.2026 for those who must file online (most).
Quote
ืืืืืื ืืืืืืื ืืืืฉืช ืืื ืฉืืื ื ืืงืืื ืืืืฉื ืขื 29.5.2026. ืืืืืื ืืืืืืื ืืืืฉืช ืืื ืืงืืื ืืืืฉื ืขื 30.6.2026.
- Personal income tax, final payment
- Not in our records
gov.il/he/service/reporting-and-payment-annual-tax-report-2025-companies inaccessible when checked
- Personal income tax, instalments
- Day 19 of the following month ยท each month
Same service page as the corporate row: advance payments report by the 19th (online). Frequency not stated; 'monthly' to verify.
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ืืืืื ืฉืืืืฉ ืขื ื-19 ืืืืืฉ ืืฉืขื 18:30 - ืืืืฉื ืืืืื ืืืืขื.
- VAT return
- Day 19 of the following month ยท each month
Periodic VAT reports filed and paid online by the 19th of the month (instead of the 15th). Reporting period (monthly or bi-monthly) is set per taxpayer and not stated on the page; the 19th is the month after the period.
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ืืช ืืืืืืช ืืชืงืืคืชืืื ืฉืืืืฉืื ืืืืคื ืืงืืื, ื ืืชื ืืืืื ืืืฉืื ืขื ื-19 ืืื ืืืืฉ (ืืืงืื ืขื ื-15 ืืื ืืืืฉ).
- Payroll withholding
- Not in our records
gov.il/he/service/reporting-and-payment-annual-tax-report-2025-companies inaccessible when checked
Running the company
Running a company here
Not in our records The authoritiesโ pages on running a company have not been read for Israel yet.
Economy and trade
What it exports
Goods Israel exported, by product, as a share of its goods exports each year. Exports include goods passing through for re-export. A share describes Israelโs own trade; it does not compare places.
| Product (HS heading) | 2022 | 2023 | 2024 | Value, 2024 |
|---|---|---|---|---|
| Electronic integrated circuits HS 8542 | 12.0% | 12.7% | 13.2% | US$8.5 bn |
| Diamonds, whether or not worked, but not mounted or set HS 7102 | 14.2% | 12.3% | 9.5% | US$6.1 bn |
| Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528 HS 8517 | 3.0% | 4.2% | 4.7% | US$3 bn |
| Petroleum gases and other gaseous hydrocarbons HS 2711 | 2.5% | 3.4% | 4.4% | US$2.8 bn |
| Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electromedical apparatus and sight-testing instruments HS 9018 | 3.3% | 3.6% | 4.1% | US$2.6 bn |
| Medicaments (excluding goods of heading 3002, 3005 or 3006) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packings for retail sale HS 3004 | 2.0% | 2.1% | 3.2% | US$2.1 bn |
| Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors HS 9031 | 3.4% | 3.0% | 3.0% | US$1.9 bn |
| Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils HS 2710 | 4.1% | 3.5% | 3.0% | US$1.9 bn |
| Turbojets, turbopropellers and other gas turbines HS 8411 | 1.1% | 1.7% | 1.7% | US$1.1 bn |
| Mineral or chemical fertilisers, potassic HS 3104 | 3.4% | 2.1% | 1.5% | US$991 m |
Total goods exports, 2024: US$64 bn. The ten largest headings are shown.