Israel Tax Agency Announces Committee Approval to Further Consider Tax Measures to Reduce Black Capital

The Israeli Tax Authority March 17 announced the Knesset Finance Committee’s approval for the further consideration of various tax measures to reduce black capital. The announcement includes measures to: 1) reduce the specified transaction threshold to 10,000 Israeli shekels (US$2,710) before VAT from 20,000 shekels (US$5,420), starting from Jan. 1, 2026, with the threshold being further reduced to 5,000 shekels (US$1,355) before VAT, starting from June 1, 2026; 2) explain that if taxpayers exceed the specified transaction threshold, they will be required to obtain an allocation number as a condition for deducting input tax; 3) reduce the specified threshold where ...