Israel Corporate Tax Calculator 2025 (מס חברות)
Calculate your company tax liability under standard 23.0% CIT, Capital Investment incentives (7.5%–16%), and shareholder dividend distribution withholding.
Taxable Profit & Status
Corporate Tax Schedule Income Tax Ordinance
Israeli Corporate Tax Incentive Tracks (Capital Investments Law)
| Incentive Track | Corporate Tax Rate | Dividend Tax Rate | Eligibility Summary |
|---|---|---|---|
| Standard Enterprise | 23.0% | 25% – 30% | General Israeli corporations |
| Preferred Enterprise (Area A) | 7.5% | 20.0% | Export/industrial in Periphery |
| Preferred Enterprise (Center) | 16.0% | 20.0% | Export/industrial in Central Zone |
| Preferred Technological | 12.0% | 20.0% | Qualifying R&D and high-tech IP |
Principal Hardware & Web Systems Engineer. Specialist in Israeli statutory fiscal systems (Income Tax Ordinance, Bituach Leumi, Dmei Havraah expansion orders, and municipal Arnona statutes).
Frequently Asked Questions (Mas Chavarot)
What is the standard corporate tax rate in Israel for 2025?
The standard corporate income tax rate (Mas Chavarot) in Israel is 23.0% on net taxable profits, pursuant to Section 126 of the Israeli Income Tax Ordinance.
What are the reduced tax rates for Preferred Enterprises (מפעל מועדף)?
Under the Law for the Encouragement of Capital Investments, qualifying industrial and export enterprises enjoy reduced corporate tax rates: 7.5% in National Priority Area A (the Periphery), and 16.0% in the rest of Israel.
What are the Special Preferred Technological Enterprise rates for high-tech?
Qualifying high-tech and IP-rich enterprises with global turnover of at least ₪10 billion enjoy an ultra-low 6.0% corporate tax rate, while standard qualifying tech firms pay 12.0%.
What is the tax rate on dividend distributions from Israeli companies?
Dividends paid to individual shareholders are subject to withholding tax: 25.0% for regular shareholders, and 30.0% for substantial shareholders (בעל שליטה) holding 10% or more of voting power.
When must Israeli corporate tax returns be submitted?
Annual corporate tax returns (Form 1214) audited by a certified CPA must be submitted by 31 May following the fiscal tax year, with automatic extension agreements available through licensed accountants.