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Feb 23, 2016

Tax Example: Rent


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 239,760 31% 1,398 5,580 11,160
ILS239,760 - ILS 501,480 34% - - -
Over ILS 501,480 38% - - -
Annual Income Tax Due 1,395 5,580 11,160
Tax Due as % of Gross Income 7.75% 7.75% 7.75%
Thanks to:
Fahn Kanne & Co Grant Thornton

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 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

TAX BASE, ILS(US$) TAX RATE
Up to 239,760 (US$ 59,940 ) 31%
239,760 - 501,480 (US$ 125,370) 34%
Over 501,480 (US$ 125,370) 48%
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 10% 1,800 7,200 14,400
Annual Income Tax Due US$1,800 US$7,200 US$14,400
Tax Due as % of Gross Income 10% 10% 10%
Thanks to:
Fahn Kanne & Co Grant Thornton

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.






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