Customs Duty and Purchase Taxes
Customs duty is imposed on certain products that are imported into Israel.The duty is comparatively high for luxury products such as stereos, televisions and the like.
In addition, purchase tax is imposed on a range of goods.
Here too, the payment is affected by the nature of the imported item.
Israel Stamp Duty
Stamp duty is payable on business documents such as: promissory notes, mortgages, trust deeds and so forth.The duty is paid by purchasing revenue stamps that are obtainable from the Post Office.
Israel Municipal Taxes
In Israel, there is no local tax imposed on income.Nevertheless, the local authority collects taxes according to the area (square meters) of the business.
As has been mentioned, the amount of the taxes are influenced only by the size and area of the business premises and not by its current income.
Israel Real Estate Taxes
There are a number of taxes in Israel that are applied to real estate.Israel Purchase Tax
Purchase tax is payable by the purchaser in a real estate transaction.Generally, starting November 28, 2021, the tax rate for investors buying in 2023 a second or additional flat is 8% for flats valued under IS 5,872,725 and 10% for flats above this ceiling.
First flat buyers in 2023 enjoy tax exemption for flats valued under IS 1,919,155.
Such buyers also enjoy smaller tax rates compared to second flats buyers for flats exceeding IS ,919,155.
On real estate sales between close members of a family when no money changes hands, purchase tax is 1/3 of the normal rate of tax.
Israel Betterment Tax
When the sale concerns business real estate, or a private apartment that is not exempt from tax, betterment tax is payable.The principles of this tax are very similar to capital gains tax which was mentioned previously.
Tags: Israel Customs Duty and Purchase Taxes, Israel Stamp Duty, Israel Real Estate Taxes, Israel Sales Tax, Israel Purchase Tax.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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