The Israeli Parliament (the Knesset) on July 29, 2013, passed significant amendments to the Israeli tax laws. These amendments, which are intended to increase tax revenues, were officially published on August 5, 2013, and generally will be effective from January 1, 2014. The most significant aspects of the new legislation are described below. The new legislation increased the tax rates that apply to regular corporations as well as to corporations that are eligible for a beneficial tax regime.
US MNCs with Israeli investments may face higher effective tax rates on their investments in Israel – both investments in regular Israeli corporations as well as investments in corporations that are eligible for a beneficial tax regime.