A 15% domestic minimum top-up tax now interacts with Preferred Technological Enterprise status. Which groups are affected and at what point the preferential rate stops producing a benefit.
- Technology Evaluator review
- 2026 QDMTT floor
- Is there a minimum share capital to form a company in Israel?
Qualification is not a one-time election. A company must demonstrate at least 20% of revenue from intellectual property developed in Israel (or, at group level, that 55% of the group's Israeli revenue is Preferred or Technological Income), and its R&D expenditure claims are reviewed by a Technology Evaluator appointed by the Israel Innovation Authority — a disallowed claim retroactively pushes the company back to a higher tier. From 2026, a new Qualified Domestic Minimum Top-up Tax (QDMTT) additionally sets a 15% effective floor for any entity inside a multinational group with global consolidated revenue above €750 million, meaning the lowest tiers no longer guarantee the nominal rate for large groups.
What a company pays in Israel. Every figure below is published on the Israel country page.
| Israel | |
|---|---|
| Official language | Hebrew (Arabic holds special status) |
| Legal forms | Ltd. (private company) · Public company |
| Employer social security | Bituach Leumi + health: ~6.70% combined up to ILS 6,331/month, ~12.60% on the portion up to the ILS 51,910/month ceiling (2026) |
| Dividend tax | 25% (30% for holders of 10%+ of shares), plus a 2–3% surtax once annual capital income exceeds ILS 721,560 (2026) |
| Minimum share capital | No statutory minimum (ILS 1 legally sufficient); the four main commercial banks generally expect ILS 10,000+ paid-up before opening a corporate account |
What makes it complex in Israel
- Technology Evaluator review — — an Innovation Authority-appointed evaluator vets the R&D expenditure claims underlying Preferred Technological Enterprise status; a disallowed claim retroactively raises the applicable rate.
- 2026 QDMTT floor — the new Qualified Domestic Minimum Top-up Tax sets a 15% effective floor for entities inside MNE groups with global revenue above €750 million, capping the benefit of the lowest preferential tiers for large groups.
Is there a minimum share capital to form a company in Israel?
No — the Companies Law sets no statutory minimum, and a nominal ILS 1 is legally sufficient. In practice, the main commercial banks generally expect at least ILS 10,000 in paid-up capital before opening a corporate bank account, and operationally most companies capitalize well above that.
Technology Evaluator review is one of the points HTLC Network handles for clients operating in Israel, within a single engagement that covers every other country they operate in — executed locally, governed centrally.
In Israel the scope is: Statutory accounts, VAT filings, and corporate tax returns aligned with Israeli GAAP/IFRS, including the revenue-mix documentation that supports Preferred Technological Enterprise status.
See Accounting & Tax Compliance in Israel for the full scope, or the Israel country page for the statutory framework across every service.
Figures as published on the HTLC Network country pages, reviewed September 2026 and collected from public sources. They are not a substitute for advice on a specific case and should be verified before being relied on.