Income tax on rent, worked example, in Israel
| Non-resident couple´s joint monthly rental income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Expenses3 | (1,500) | (6,000) | (12,000) | |
| Less Depreciation4 | (12,000) | (48,000) | (96,000) | |
| = Taxable Income | 4,500 | 18,000 | 36,000 | |
| Income Tax 6 | ||||
| Up to ILS 238,800 | Unlock | Unlock | Unlock | Unlock |
| ILS238,800 - ILS 496,920 | Unlock | Unlock | Unlock | Unlock |
| ILS496,920 - ILS 640,000 | Unlock | Unlock | Unlock | Unlock |
| Over ILS 640,000 | Unlock | Unlock | Unlock | Unlock |
| Annual Income Tax Due | Unlock | Unlock | Unlock | |
| Tax Due as % of Gross Income | Unlock | Unlock | Unlock | |
Thanks to: |
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Notes
Fahn Kanne & Co Grant Thornton is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 USD$= 4.00 ILS
3 Estimated values. Income-generating expenses are deductible when calculating taxable income.
4 Estimated values. The depreciation rate is 2% per annum.
5 Rental income is taxed at progressive rates.
INCOME TAX 2015 ON PASSIVE INCOME |
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| TAX BASE, ILS(US$) | TAX RATE | |
| Up to 238,800 (US$ 59,700 ) | 31% | |
| 238,800 - 496,920 (US$ 124,230 ) | 35% | |
| 496,920 - 640,000 (US$ 160,000 ) | 47% | |
| Over 640,000 (US$ 160,000 ) | 50% | |
| Source: Global Property Guide | ||
| Non-resident couple´s joint monthly rental income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| = Taxable Income | 18,000 | 72,000 | 144,000 | |
| Income Tax 3 | ||||
| Flat Rate | Unlock | Unlock | Unlock | Unlock |
| Annual Income Tax Due | Unlock | Unlock | Unlock | |
| Tax Due as % of Gross Income | Unlock | Unlock | Unlock | |
Thanks to: |
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on February 23, 2016.
Notes
Fahn Kanne & Co Grant Thornton is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 4.00 ILS
3 The 10% tax is imposed on the gross rental income.
