Tax and Purchase Tax Tax and Purchase Tax –– Indirect Taxes Indirect Taxes

Customs:

Customs are levied on imported products in order to protect local production.Today most import to Israel (more than 90%) is exempt from customs due to

trade agreements signed by Israel with a number of countries and blocks.

Purchase tax:

A tax levied on purchase of consumption goods, mostly vehicles, cigarettes, alcohol, electronics and cosmetics. This tax is the same for both local production and imported goods.

Fuel Blo:

A specific tax (in NIS per Litter) levied on all types of fuel. In addition to being a substantial source of revenue, its aim is to express the damages involved in fuel use in terms of health, environment, etc.

Marginal Tax and Tax BracketsMarginal Tax and Tax Brackets Tax yearTax year Deductions and

CreditsDeductions and Credits Tax thresholdTax threshold ExemptionExemption

TaxpayerTaxpayer Tax rebatesTax rebates Unified / Separate calculationUnified / Separate calculation

Contesting administrative decisions of the Tax Authority

Contesting administrative decisions of the Tax Authority

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Taxes – TermsTaxes – Terms

• 100% Disabled or blind persons;• Old age pensions, disability benefits, etc. that are paid by the

National Insurance Institute or by a foreign country under its laws;

• Work dismissal compensation and retirement compensation;• Compensation made to family members following a death of

an employee;• Some revenues of new immigrants and returning citizens.

• 100% Disabled or blind persons;• Old age pensions, disability benefits, etc. that are paid by the

National Insurance Institute or by a foreign country under its laws;

• Work dismissal compensation and retirement compensation;• Compensation made to family members following a death of

an employee;• Some revenues of new immigrants and returning citizens.

Exemptions

Exemptions from income tax are given in special cases.

Exemptions

Exemptions from income tax are given in special cases.

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Taxes – TermsTaxes – Terms

Marginal Tax and Tax Brackets

Marginal Tax and Tax Brackets Tax yearTax year Deductions and

CreditsDeductions and

Credits Tax thresholdTax threshold ExemptionExemption

TaxpayerTaxpayer Tax rebatesTax rebates Unified / Separate calculation

Unified / Separate calculation

Contesting administrative decisions of the Tax

Authority

Contesting administrative decisions of the Tax

Authority

• Basic deductions and credits are intended to ensure that tax is not deducted from the basic income required for the subsistence of citizens. Tax is paid only for revenues over the basic amount, called the "tax threshold".

For example: In the 2012 tax year, the tax threshold for a single male who is an Israeli citizen was 4,837 NIS per month.

• Basic deductions and credits are intended to ensure that tax is not deducted from the basic income required for the subsistence of citizens. Tax is paid only for revenues over the basic amount, called the "tax threshold".

For example: In the 2012 tax year, the tax threshold for a single male who is an Israeli citizen was 4,837 NIS per month.

Tax threshold Tax threshold

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Taxes – TermsTaxes – Terms