Israel

Non-resident couple's joint monthly rental income1		US$1,500	US$6,000	US$12,000
Annual Rental Income		18,000	72,000	144,000
Less Cost2		(1,500)	(6,000)	(12,000)
Less Depreciation3		(12,000)	(48,000)	(96,000)
= Taxable Income		4,500	18,000	36,000
Income Tax Rates5
Up to US$31,200	30%	1,350	5,400	9,360
US$31,200 – US$56,000	36%	-	-	1,728
US$56,000 – US$96,500	25%	-	-	-
Over US$96,500	25%	-	-	-
Annual Income Tax Due		US$1,350	US$5,400	US$11,088
Tax Due as % of Gross Income		7.50%	7.50%	7.70%
Thanks to:

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 March 20, 2007.

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 Estimated values. Income-generating expenses are all deductible.

³ Estimated values. The depreciation rate is 2% per annum.

⁴ These tax bands and tax rates are only applicable for the year 2006. Changes in the income tax bands and rates are expected in the next few years.

Non-resident couple's joint monthly rental income1		US$1,500	US$6,000	US$12,000
Annual Rental Income		18,000	72,000	144,000
= Taxable Income		18,000	72,000	144,000
Income Tax Rates2
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:

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 March 20, 2007.

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 The 10% tax is imposed on the gross rental income.