Customs and Taxes

Customs on GoodsPersonal Taxes

 Customs on Goods

•  For the most up-to-date information, refer to the official government site at http://www.mof.gov.il/customs/eng/guidef.htm.
  
  
•  There are no V.A.T. (Value Added Tax) charges to A-2 visa holders when buying certain specified, locally manufactured, appliances.
  
  
•  According to the Value Added Tax (VAT) Law, holders of A-2 or B-2 visas are able to benefit from a zero rate of VAT on a vast array of services available during their stay in Israel, such as hotel overnight accommodations, car rental, sightseeing transportation (either in a private vehicle or a bus licensed for such purpose), water cruises (within Israel), flights (within Israel).

  In addition, a special arrangement exists whereby a tourist may request a VAT refund on purchases made during his or her stay. For more information on V.A.T refunds refer to
  http://www.tax-refund.co.il/index.html.

 Personal Taxes

Some countries have a bilateral agreement with Israel; as of November 1, 2003, the citizens of said countries are tax-exempt. See the list of the countries with which we have such a bilateral agreement at http://www.mof.gov.il/hachnasot/amanot.htm

The payment to citizens of countries with which Israel does not have a bilateral agreement is taxable as follows:

There are two categories of foreign residents who receive funding:
Foreign Specialists, and Accepted Foreign Residents.

1. Foreign Specialists
   • Definition
     A foreign specialist is defined as someone to whom the following applies:
     1. Invited by an Israeli resident (not manpower agent/ company) in order to work in his field of expertise.
     2. Legally residing in Israel.
     3. Working in his field of expertise during his entire stay.
   • Taxes
     1. For the first year of their stay, Foreign Specialists' room and board expenses, i.e. 270 NIS per day x 30 = 8,100 NIS, are exempted from Income Tax and National Insurance. Therefore:

        i.	6% will be deducted on a 10,000 NIS payment and above
        ii.	10% will be deducted on a 15,000 NIS payment and above

     2. After the second year,

        i.	18% will be deducted on a 10,000 NIS payment
        ii.	25% will be deducted on a 15,000 NIS payment Salaries lower than 10,000 will be taxed according to the amount

2. Accepted Foreign Residents
   • Definition
     A foreign resident is defined as someone to whom the following applies:
     1. Legally residing in Israel.
     2. Receiving funding lower than 11,000 NIS
   • Taxes are fixed according to the funding.