Israel Parliament Considers Bill to Introduce Additional Tax on Financial Institutions

The Israeli Parliament (Knesset) March 6 accepted for consideration Bill No. M/1708-A, to introduce an additional tax on financial institutions. The bill includes measures to: 1) apply a 6 percent additional tax on financial institutions with assets equal to 5 percent of all Israeli banks’ total assets; 2) increase the VAT rate to 26 percent from 17 percent on the bank’s profits from the enactment of the law until Dec. 31, 2025; and 3) exclude banks with a small scope of activity from the change in the VAT rate. The law enters into force April 1. [Israel, Parliament, 03/06/24]

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