The Wealthy People and the Taxes in Israel

Eitan Eldar points that taxes in capital gains are common in many modern countries, and Israel among them. They are imposed when one sells asset, on the difference between the cost of the sale and its purchase.

What is an “asset”? Eitan Eldar explains that asset can be: businesses, reputation of a company, securities, etc. In Israel, this kind of tax is imposed also on real estates assets, and called “Mas Shevach”.

In Israel, there is a difference between the working population and the wealthy. While the first pay an income tax rate that can reach 48 percent, the latest who own capital pay tax at rate of 30 percent. The country claims that there isn’t any discrimination – because the wealthy pay double tax – one for the capital of the company and one for the dividends of the company. Together, these taxes reach up to 50 percents.

Leave a Comment