Israel Tax Agency Issues Guide on Individual Income Tax Credit for Donations to Public Institutions

The Israeli Tax Authority May 25 issued a guide on the individual income tax credit for resident individuals on donations to public institutions. Topics covered include that: 1) the credit is provided through a tax refund or tax reduction, and the credit rate is 35 percent of the donation; 2) a 207 Israeli shekel (US$73) cumulative annual donation minimum applies, with donations capped at the lower of approximately 10.4 million shekels (US$3.7 million) for 2026, or up to 30 percent of taxable income for the year; 3) the credit can be received over three years when donations exceed the cap, ...