Israeli Tax Authority

In the field of income tax and real estate taxation, the ITA is responsible for the collection of direct taxes, real estate tax, extraordinary levies, payroll tax and revenue tax. The ITA operates by virtue of laws, regulations and directives, chief among them the Income Tax Ordinance, the Land Taxation (Appreciation and Purchase) Law, the Property Tax and Compensation Fund Law, the investment incentive laws (“”Encouragement Laws””), the Value Added Tax (Payroll and Profit Tax) Law, the Administrative Offenses Law, the Taxes (Collection) Ordinance, the Income Tax (Taxation under Inflationary Conditions) Law, and the Income Tax (Inflationary Adjustments) Law, as well as various tax-related directives that are included in other laws and regulations.

In the field of customs and VAT, the ITA is responsible for the collection of indirect taxes that are imposed on the consumption of goods and services. The taxes collected include: VAT at a uniform rate on all transactions in the economy, customs duties on all imported goods, purchase tax on imports and domestic goods, and fuel excise on all types of fuel.

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