Israel corporate tax rate
The standard rate of Israeli corporate income tax (מס חברות) on the taxable income of a body of persons, fixed in section 126(a) of the Income Tax Ordinance [New Version], 5721-1961. It is a flat, non-progressive rate with no small-company band.
| Current value | 23 percent |
|---|---|
| In force from | 2018-01-01 |
| Official source | Income Tax Ordinance [New Version], 5721-1961, section 126(a) — 'מס חברות ... 23%' — consolidated text published by the Israel Tax Authority on gov.il; the section carries Amendment No. 234 of 5776/2016 (the Economic Efficiency Law (Legislative Amendments for Achieving the Budget Targets for Budget Years 2017 and 2018)), which is the instrument that set the current rate |
| Last verified | 2026-07-24 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
Confirmed unchanged for 2026 — the brief's 23% is correct. Amendment 234 phased the rate down from 25% to 24% for tax year 2017 and to 23% from tax year 2018, and section 126(a) has not been amended since; it is not indexed and does not move with CPI. Corroborated for the current year by the ITA's own 2026 withholding table (לוח עזר לחישוב מס הכנסה, chapter ז), which sets withholding on a payment to a NON-RESIDENT BODY OF PERSONS at 23% — the corporate rate — against 25% for a non-resident individual. WHAT 23% IS NOT: (a) preferred/special-preferred enterprises under the Encouragement of Capital Investments Law, 5719-1959 pay 5%–16% depending on location and classification, and that regime, not the 23% headline, is what most large Israeli technology exporters actually pay; (b) financial institutions (מוסד כספי) additionally pay profit-and-payroll tax at 18% and non-profit institutions pay payroll tax at 7.5% (ITA 2026 deductions booklet, chapter ו); (c) from 1 JANUARY 2026 Israel's domestic Pillar Two top-up tax is in force — the Knesset completed the QDMTT legislation in December 2025, so multinational groups with global turnover of EUR 750m or more whose Israeli effective tax rate falls below 15% pay a top-up to that floor (Ministry of Finance, Chief Economist Division, 'מס חברות מזערי', published 19.01.2026, https://www.gov.il/he/pages/minimal-corporate-tax). That raises the floor for lightly-taxed large groups; it does not change the 23% statutory rate. Israel operates a two-tier system: corporate tax at 23% and then dividend tax on the shareholder (25%, or 30% for a substantial shareholder). ACCESS NOTE: gov.il is Cloudflare-protected against non-browser clients; the consolidated Ordinance PDF linked from the page above is a 312-page scan-quality text file and needs a browser session to download.
Earlier values
| From | Value | Source |
|---|---|---|
| 2017-01-01 | 24 | Income Tax Ordinance section 126(a) as amended by Amendment |
Get it programmatically
curl https://asiaref.dev/v1/il/corporate-tax
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://asiaref.dev/v1/il/corporate-tax/history?from=2020-01-01
# Provenance: curl https://asiaref.dev/provenance/il/corporate-taxOther Israel series: policy interest rate · VAT rate · minimum wage · public holidays · inflation rate (CPI) · income tax rates