El Israel Ministry of Finance announced that starting in 2026 a minimum income tax of 15% will be established on profits generated by multinational companies.
The selection criterion for these companies is that they have annual global revenues greater than $812 million dollars.
This is a regulation that almost 150 countries already have internationally, with the aim of avoiding tax loopholes and the departure of taxes to jurisdictions with low rates. It is usually called the Qualified Minimum Domestic Tax (QDMTT).
Bezalel Smotrich, finance Minister, expressed that “Israel's decision to implement the international standard in the taxation of multinational corporations will help preserve the attractiveness of the Israeli tax regime in the new global tax reality and will prevent the outflow of taxes generated in local operations.”
Until now, Israel has historically offered reduced rates to large technology companies under the Capital Investment Incentive Law, but starting with the new legislation, companies paying less than 15% in Israel will have to increase their taxation.