Israel INDIVIDUALS Personal Income Tax (PIT)
INDIVIDUALS
HOUSE (residential)
BUSINESS PREMISES
Personal Income Tax (PIT)
Personal Income Tax (PIT)
Tax rate
Progressive tax scale: 31% - 50%, (or 10% Progressive tax scale: 31% - 50%, (or 10% - 50% if the individual age is above 60) - 50% if the individual age is above 60). or flat tax rate of 10% for income rent in Israel (15% income rent from abroad). (In most cases the client can choose)
Tax form
Form 353 rent income in Israel, form 352 abroad
Formal obligations
COMPANIES/LEGAL ENTITIES HOUSE (residential)
BUSINESS PREMISES
Personal Income Tax (PIT)
Annual report for rental income
X
To establish file in income tax, and to subTo establish file in income tax, and to submit annual report regarding “rental income” mit annual report regarding “rental income”
Others Corporate Income Tax (CIT)
Corporate Income Tax (CIT)
Corporate Income Tax (CIT)
Tax rate
Corporate Income Tax (CIT) 23%
Tax form
X
X
Formal obligations
Annual report To establish a legal company, VAT file, Income tax file
Others
If the rent is classified as business activity: corporate tax 23%.
If the rent is classified as business activity: corporate tax 23%.
VAT (Value Add Tax)
VAT (Value Add Tax)
VAT (Value Add Tax)
VAT (Value Add Tax)
Tax rate
Exempt
Exempt
17%
Tax form
X
X
Annual report
Formal obligations
X
X
Open a VAT file
Registration
X
X
Open a file In VAT offices
Waving tax exemption
X
X
Others
If renting is classified as business activity: VAT tax 17%
If renting is classified as business activity: VAT tax 17%
Others / Comments
Others / Comments
Others / Comments
Air BNB is considered Income from business activity.
Air BNB is considered Income from business activity.
INTERNATIONAL COMPARISON. March 2019
Auren Israel www.auren.com
www.antea-int.com
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