israeli-tax-withholding
Installation
SKILL.md
Israeli Tax Withholding
Instructions
Step 1: Identify Payment Type and Default Rate
| Payment Type | Hebrew | Default Rate | Section |
|---|---|---|---|
| Services/assets (payee keeps acceptable books, no certificate) | shlumim avur sherutim o nechasim | 20% | reg. 1977 |
| Services/assets (payee without acceptable books, no certificate) | shlumim avur sherutim o nechasim | 30% | reg. 1977 |
| Services (companies, no certificate) | shlumim avur sherutim | 20-30% by tax-office classification | reg. 1977 |
| Rent (real estate, where the tenant deducts the rent as a business expense) | schar dira | 35% (uniform, no residential/commercial split) | reg. 1998 |
| Royalties | tamlugim | 23% | 170 |
| Interest | ribit | 25% | 164 |
| Dividends | dividendim | 25-30% | 164 |
| Payments to non-residents | tishlumin letoshvei chutz | 25% | 170 |
For a service/asset payment with no certificate, the statutory default under the 1977 regulations is 20% where the payee keeps acceptable books and 30% where the payee does not (the 30% is the penalty rate for an unverified/no-books payee, not a separate "high" rate, there is no ~47% service-withholding rate). A valid certificate is what brings the rate down further (often to 0-5%). Rent on real estate that the tenant deducts as a business expense is withheld at a uniform 35% (there is no separate residential vs. commercial rate); a private residential tenant who cannot deduct the rent is generally not a withholding agent at all.