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Israel Tax News 2019













Israel New Cash Law


February 2019
Starting January 1, 2019 a new cash law is in effect in Israel, aiming to restrict the use of black money.
According to the law in transactions between a customer and a business only transaction of up to IS 11,000 can be paid in cash.
For transactions exceeding IS 11,000 only 10% of the total transaction can be paid in cash.
For transactions between two private people, e.g. a sale of private car, the ceiling for cash payment is IS 50,000. February 2019.


Israel Taxation of Share Warrants


December 2018
According to a new circular published by the Israeli tax office there will be a dramatic change in taxation of startup share warrants to employees.
At present the taxation on warrants exercised in the event of an exit or public offering is 25%. According to the circular such warrants will be taxed as labor income, for senior employees a tax of around 50%.


Israel Tax Update 2018


January 2018
Starting January 1, 2018 the new corporate income tax rate in Israel is 23% compared to 24% in 2017.
The tax rate is expected to be further reduced to 20% by 2021.
The personal income tax rates are 10%-47% ,47% for monthly income exceeding IS 41,530.
The V.A.T. rate remains at 17% same as in 2017.



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