Excerpts from the
Annual State Revenue Report for 1998

THE ISRAELI TAX SYSTEM(*)

ADMINISTRATIVE STRUCTURE OF THE TAX SYSTEM

A. GOVERNMENT MINISTRIES
B. CUSTOMS AND VALUE ADDED TAX DIVISION
C. GOVERNMENT MINISTRIES' FEES
D. NATIONAL MINISTRIES
E. MUNITIPAL AUTHORITIES


Four agencies set policy concerning the imposition, collection, and enforcement of taxes
compulsory payments:

a. Government ministries;

b. The National Insurance Institute;

c. Municipal authorities.

d. Other statutory entities.

(*)As of January 1999, unless stated otherwise.

A. GOVERNMENT MINISTRIES

 1. Ministry of Finance

(a) Economic Research and State Revenue Administration

The Economic Research and State Revenue Administration has two duties: dealing with tax policy, and providing the Ministry of Finance with macroeconomic consulting services. In tax policy, it has various duties: advising the Minister of Finance and his official in matters of tax policy; formulating a tax-collection forecast in the course of preparing the state budget; monitoring tax collection and the implementation of tax policy during the year; and initanting and promoting proposals for changes in the tax system as part of the government's economic policy, including the handling of tax legislation. The Administration is also in charge of tax research and provides the public with current information on tax collection. The Administration coordinates the interministrialcommittee on government offices' fees. It conducts discussions with other governmrnts to conclude double-texation treaties (see Appendix). Finally, the Administration monitors macroeconomic developments, advises the Ministry administration in this regard, and publishes information on the topic.

(b) Income Tax and Property Taxation Division

The Division collects direct taxes, property taxes, and Value Added Tax from nonprofit organizations and financial institutions.
The Division is headed by Income Tax Commissioner. The Division has twenty seven regional assessors' offices, nine regional property-tax offices, four investigation offices, and three bailiffs' units. The Income Tax Comission is composed of staff departments headed by the Vice Comissioner and deputy commissioner who are in charge of operations in their spheres of responsibility. The departments are Administration and Organization, Assessments and Economics, Investigations, Professional Division, Legal Division, Deductions system, Collections and Intelligence, Property Taxation, Internal Auditing and Bookkeeping, and Bailiff's Service.
The Division operates on the basis of laws, regulations, and directives including the Income Tax Ordinance, the Property Tax and Compensation Fund Law, laws that encourage specific economic activities (such as the Encoragement of Capital Investments Law), and the Tax (Collection) Ordinance, to name only a few.
In 1998, individual taxpayers filed 368,000 tax returns (including 50,000 employees and 85,000 corporate managers who are required to file returns), as did 111,000 corporations (including 75,000 going concerns).
In 1998, the Division had 3,052 permanent employees and used 6,225 month of temporary labor.

(c) Customs and Value Added Tax Division

The Customs and Value Added Tax Division collects indirect taxes on goods and services (with the exception of VAT on nonprofit organizations and financual institution).The Division is also in charge of applying and enforcing import rules. It derives its powers mainly from the Custom Tariffs and Exemptions Ordinance and the Customs and Exite Taxes (Modification of Tariffs) Law, among other statuses.
Changes in customs tarrifs are made by means of orders that the Minister of Finance is authorized to issue. Under certain conditions, these orders require approval of the Knesset Finance Committee.
The Division is composed of an administration and following field units: seven customs houses, seventeen VAT and purchase-tax units, and five investigation units. In 1998, the Division's labor force (1,700 permanent employees and 3,400 month of temporary labor) handled some 350,000 businesses.

(d) Computer Service System (Sha'am)

The Computer Service System is auxiliary unit of the Finance Ministry, subordinate to the Economic Research and State Revenue
Administration, that develops and manages computer informationsystems that serve the Ministry and its tax divisions.
The Division has 2,000 employees. It is composed of an administration and the following field units: seven customs houses, seventeen VAT and purchase-tax units, and five units for investigations.

2.Additional Governmebt Offices that Engage in Collection

In addition to the Ministry of Finance,various government ministries - Transport, Justice, Interior, ect. - apply and collect fees. The main fees petrain to driving and motor and motor vehicles, court fees and fines, and so on. Most of the revenues from these fees are routed to the state budget; a smaller portuin is earmarked for the ministries that collected them. All fees require the approval of the Minister of Finance and the relevant Knesset committee before they are set.The Minister of Finance approves changes in fees after thet are discussed by an interministrial committee headed by the Directir of the Economic Research and State Revenue Administration.(*2)

(a) National Insurance Institute

The national Insurance Institute collects compulsory payments under the National Insurance Law (Consolidated Version), 5755 - 1995, and the taxes set forth in the State Health Insurance Law, 5754 - 1994. The Institute is supervised by the Minister of Labor and Social Affairs, who implements the National Insurance Law and is authorized to introduce regulations based on it.
The Minister heads the fifty-member National Insurance Council, in which labor organizations, management organizations, government ministries, and the public are represented. The Administration is the managing and executive authority of the National Insurance Institute. The Institute has ninteen branches and sixty sub-branches countrywide. It had 3,300 employees in 1998.

(b) Munitipal Authorities

Munitipal authorities collect munitipal property taxes, fees, and betterment charges for properties in their areas of
juridiction. Each authority has its own tax administration.

(c) Other Statutory Entities

Additional statutory entities, such as the Israel Broadcasting Authority and the Ports and Railroads Authority, are
allowed to charge various fees and duties. This chapter does not discuss these payments.

(*2) For details, see Chapter XVI of this Report.

TAX BASES AND RATES

A. Income Tax and Property Tax Division

1. Income Tax and Capital Gains Tax

Four types of taxes apply to income and capital:

(a) income tax;

(b) capital-gains tax;

(c) payroll tax (Value Added Tax applying to nonprofit organizations and financial instructions,
.... as explained in the selection on indirect taxes);

(d) property taxes.

(a) Income Tax

(1) Personal Income Tax

Personal income tax is computed in the following way; of all the taxpayer's income from all sources, tax-exempt income and deductions (including allowable expenses)bare substracted and (for the self-employed only) losses are offset. On the remaining income, i.e., the taxable income, the tax function (brackets, rates, ect.,) is applied and the tax liability is obtained. Credits are substracted from the tax liability. The remainder is personal income tax.

Tax Base

Personal income tax is imposed on individuals' taxable income that was accured in, derived, or received in Israel from
the following sources:

1. ...work income, including income from a salary, a business, a vocation, various types
...... allowances, and additional income originating in taxpayer's past work. Income derived
...... from abroad is not liable to personal income tax in Israel unless it is received in Israel and
...... unless the taxpayer practices the same vocation in Israel or was sent abroad by an Israeli
...... employer;
2. ...non-work (passive) income, including income from interest and dividents, proiperty rental,
...... royalites, and so on;
3. ...income from a random transaction.

All individuals are assessed as separate units, on the condition that the sources of the spouses' earned income are not
interdependent. When interdependence in source of income is present, the spouses are taxed jointly.

Main Types of Tax-Exempt Income

1. ...Work income of the blind and the disabled up to NIS 38,100 per month, and unearned
...... income up to NIS 4,560 per month.
2. ...Benefits from the Ministry of Defence and National Insurance Institute (except for
...... maternity allowances and uneployment compensation).
3. ...Interest on saving plans.
4. ...Gains from the sale of securuties - unless they are the income of a business or derived
...... from a random transaction of commercial nature.
5. ...Employers' contributions to employees' advanced-training funds, at 7.5 percent, are
...... tax-exempt from the employee's standpoint up to a maximum wage of NIS 14,400 per
...... month. If the employer's contributions are kept with the found for six years without
...... interruption, or for a shorter period that they are withdrawn for specificpurposes
...... stipulated in the law (e.g., study), the withdrawal (including indexation differentials,
...... interest, and other gains) is tax-exempt.
6. ...Withdrawals of employer's contributions from provident funds.
7. ...Withdrawals from provident funds for severance pay confer a tax exemption for one
...... month's income per year of work up to an income ceiling of NIS 9,190 per year of work.
...... In cease of death, the exemption ceiling for severancepay is doubled.
8. ...Withdrawals from pension funds are tax-exempt on 35 percent of the pension up to a
...... qualifying allowance ceiling of NIS 6,300 per month. The non-exempt is taxable
...... at regular rates.
9. ...Lottery winnings and prizes from parties other than employers.

Deductions from Income

1. ...Employer's allowable expenses - 8.33 percent of pension-base imcome that is deposited
...... with a severance-pay fund and 5 percent of income deposited with a provident fund, or 6
.......percent deposited with a pension fund. In the event of benefit-type contributions, the tax
...... benefit is limited to a qualifying income ceiling of NIS 9,200 per month.
2. ...For wage income that does not continue a pension base, employees who contribute to
...... provident funds are given a 5 percent deduction on income up to a qualifying income
...... ceiling of NIS 9,200 per month.
3. ...Self-employed taxpayers who contribute to provident are given a 7 percent reduction on
...... income up to a qualifying income ceiling of NIS 9,200 and up to 11 percent of income
......(up to the aforementioned ceiling) for contrubutions to pension funds.
4. ...Allowable expenses that are incurred in order to produce income - e.g., depreciation,
...... motor-vehicle expenses, per diem, and research and development - are tax-exempt.
...... A small portion of employees' expenses are allowable.
5. ...Personal health-insurance premiums (not including dental insurance) are tax-exempt.
6. ...52 percent of national Insurance contribution expenses of self-employed are tax-exempt.
7. ...In 1996, contributions to advanced-training funds for the self-employed brcame tax-
......deductible. The rate of the benefit has risen gradually and peaked in 1998, when,
..... 7 percent of income could be set aside (up to a ceiling of NIS 196,000 per year) at a
..... deduction of 4.5 percent.

Table VI-1
Personal Income - Tax Rates and Brackets-Monthly Income, 1999
(NIS and Percent)
Tax Bracket Monthly income Percent

Minimum (NIS) Maximum (NIS)
(1) 0 1,920 10
(2) 1,921 3,830 20
(3) 3,831 10,100 30
(4) 10,101 18,300 45
(5) 18,301 18,301 and above 50

Source: Income Tax Commission

 These brackets and rates apply only to earned (work) income.Unreaded taxable income is taxed at an initial rate of 30 percent and thence at the other brackets that apply to the taxpayer's earned income (45 percent and 50 percent) after the earned and unearned incomes are added together. Other kinds of unrearned (passive) income are taxed at a limited uniform rate. For example, dividend income and income derived from abroad are taxed at 25 percent and interest on bonds and capital gains from the sale of foreign securities are taxed at 35 percent.
Since the 1995 fiscal year, individuals who have reached the age of 60 have paid an initial tax rate of 10 percent on all types of income (earned and other). Their remaining income is taxed at the regular rates shown in Table VI-1.

Limited Tax Rates

The types of income listed below are taxable at rates irrespective of the tax brackets that apply to the
taxpayere's other income:

1. ...Income from dividents of publicly-owned corporations - 25 percent.
2. ...Income from dividents of Approved Enterprises under the Encouragrment of Capital
.......Investments Law - 15 percent.
3. ...Income up to NIS 6,870 per month from rental of dwellings to individuals is
.......tax-exempt. Income exeeding this sum is substructed from the sum of the exemption
.......sum. In other words, the tax exemption ceiling of NIS 6,870 per month. Accordingly,
.......a monthly income from residential rental that exeeds NIS 13,740 per month us taxable
.......at the regular income-tax rates, with an initial bracket of 30 percent.
4. ...If a dwelling is rented to a corporation for which the Income Tax Commissioner has not
.......approved the aforementioned exemption, the rent income is liable to a tax rate of 10
.......percent. The income ceiling that creates an entitlement to the reduced tax rate of 10
.......percent is NIS 6,800 per month. If the rate income exceeds this sum, the entire rent
.......income taxed at the regular income-tax rates, with an initial rate of 30 percent.
5. ...Under certain conditions, key-money income of individuals and corporations is taxed at
.......a limited rate of 35 percent.
6. ...Mutual funds and foreign securities - see section from and reductions on capital-gains tax.

Tax Credits

Most credits are given in the form of credit points, sometimes up to a credit ceiling or a qualifyinf-income ceiling, but
never greater than the pre-tax liability. Each credit point is worth NIS 165 per month in 1999, and starting January 1, 1997,
credit points are adjusted on J Since January 1, 1997, credit points are adjusted on January 1 of each year.

...The credits are listed below:

1. Every Israel-resident taxpayer is entitled to 2.25 credit points.
2. Since fiscal year 1996, women have been entitled to a further half credit point.
3. Married persons with non-working spouses are entitled to an additional credit point.
4. Working mothers of children under 18 are entitled to one additional credit point for each child. They are
entitled to only half a credit point per child during the year of the child's birth, and in the year in which
the child reaches age 18.
5. Newely arrived immigrants are entitled to three additional credit points in their first eighteen months in the
country, two additional credit points in the following year, and one credit point in the next successive year.
6. Individuals with dependent children (divorcees, widows/widowers, and single-parent families) are entitled to one
additional credit point on the grounds of being the heads of single-parent families.
7. Contributions to provident funds, made out of wage income that is included in the taxpayer's pension base, confers
a tax credit of 35 percent. The contribution is limited to 5 percent of qualifying income up to NIS 9,200 per month.
8. Contributions to provident funds from wage and work income that is not included in the taxpayer's pension base give
the worker (employee or self-employed) a tax credit of 25 percent of the contribution not taken into account for deduction.
9. Charitable donations are given a 35 percent credit up to 30 percent of taxable income or NIS 451,000 whichever is lower.
The smallest allowable contribution is NIS 350. If the donor is eligible for a deduction on account of research and
development expenses, the combined deduction and credit shall not exceed 50 percent of his/her taxable income.
10. A 15 percent tax credit is given for shift work, up to a maximum credit of NIS 700 per month. However, the credit is not
awarded for the portion of the shift wage that, after added to the regular wage, results in a monthly income exceeding NIS7,960.
11. Residents of specific localities are given tax credits irrespective of where the income is derived from (unless stipulated to
the country); see Table VI-2.

Table VI-2
Specific Localities and Income-Tax Credits and Reductions

(NIS and Percent)
Locality: Migdal ha-'Emeq Ofaqim, Safed, Tiberias, Karmiel, Sederot, 'Arad, etc. Misc localities, mainly over the Green Line Yeroham, Mitspe Ramon,
Eilat(1)		 Northern border localities (except Qiryat Shemona) Qiryat Shemona
Rate of reduction (%) (2) 3 5 7(3) 10 15 20
Maximum qualifying income NIS 6,935 per month NIS 6,535 per month NIS 6,935 per month NIS1 10,100 per month without a ceiling NIS 179,400 per year(4)



Source: Income Tax Commission

Notes to the table:
1. Residents of Eilat also receive a credit for taxable income from a business or vocation on account of income
generated in the Eylot area.Residents of Eilat can chose between this benefit, or instead get 7% credit up to
a ceiling of NIS 10,100 income. Residents of Mitspe Ramon are eligiblw to chose as an alternative a 25% reduction
for income (excluding dividents, interest, capital gains, and income originating in real estate) derived in and near
Mitspe Ramon. The maximum credit is NIS 3,360 per month. In this alternative, there are special rules for calculating
tax reductions.
2. The tax reduction is a credit set at a certain percent of taxable income as shown in the table.
3. In most localities where a 7 percent reduction is offered, it is also given to "teaching workers"
and "medical workers" who produce most of their earned or vocational income in these localities,
even if they do not dwell there. People who practice these occupations in Beit She'an or Qiryat
Shemona are also entitled to the 7 percent reduction even if they do not live there.
4. A discount of only 10 percent is given for income exceeding this limit.



Table VI-3
Personal Earned Income Tax, 1996 - 1999;Upper Limits of Brackets, Value of Credit Point, and Tax Threshold,
and Ceiling of Benefits (NIS, current prices, and in percent)

Percent

Year
 Month

1996 1997 1998 1999 1999
Tax rates on earned income Upper limit of income-tax brackets (NIS)
10% ... 19,640 21,240 23,040 1,920
15% 37,900 ... ... ... ...
20% ... 39,360 42,480 45,960 3,830
30% 99,760 103,560 111,960 121,200 10,100
45% 180,740 187,680 202,920 219,600 18,300
50% 180,741 187,681 202,920 219,600 18,800
and above and above and above and above and above and above





Credit-point value 1,633 1,692 1,836 1,980 165

Total tax according to number of credit points
2.25 24,495 28,875 31,272 33,792 2,816
2.75 29,938 33,105 35,856 38,700 3,225
3.25 35,382 37,335 40,455 43,680 3,640
3.75 39,363 40,830 43,416 47,724 3,977

Ceilings for income-tax benefits
Income qualifying for provident-fund benefits 90,600 93,600 102,000 110,400 9,200
Allowance qualifying for 35% exemption 62,150 64,560 69,840 75,600 6,300
Exemption for retirement grant (1) 7,320 7,850 8,490 9,190 .....
Income ceiling for advanced-training fund purposes (employees) 158,000 160,800 168,000 172,800 14,000



Source: Income Tax Ordinance

Notes to the table:
(1) The maximum allowable retirement benefit per year of work, as of January in the relevant year.
Only in 1996 was the ceiling adjusted during the year.


(2) Corporate Income Tax

The Income Tax Ordinance deffines the taxable income corporations and allows them to deduct various expenses that are instructured
in order to generate income.

Tax Base

The tax base is the same as that of personal-income tax. Taxable income is adjusted to the rate of increase of the Consumer Price Index
as set forth in the Income Tax (Inflationary Adjustments) Law, which stipulates the method of adjustment. The decline in inflation in
the past few years has made this adjustment less important.

Tax Rate

(1) Ordinary corporations are taxed at 36 percent.
(2) Corporations with foreign investment are taxed at 10-25 percent, commensurate with their proportion of foreign investment.
When all
(3) Approved Enterprises under the Encouragement of Capital Investments Law (ECIL) pay corporate tax at a rate of 25 percent.
(4) The alternative track for Approved Enterprises gives such enterprises a tax exemption for two years, six years, or ten
years, depending on their location (investment area). The alternative track is available to Approved Enterprises (as defined
in the ECIL) that forgo an investment grant.

The following amendment went into force in 1999:
Since 31.1.99, the exempt value from land-betterment tax from the sale of two dwellings, was raised to NIS 1,500,000, according to the conditions stated in Paragraph 49(e)(2), as mentioned above.
Also, there was awarded a partial exemption for the selling of two dwellings a combined value of up to NIS 2,500,000, according to the conditions stated in Paragraph (e)(a1) of the Land Betterment Tax Law. Ceiling will be updated at the beginning of each year according to the raise in the Consumer Price Index

Main Tax Exemptions and Reductions
Deductible expences: payroll, raw materials, depreciation, interest, rasearch and development, ect.
Research and development expenses are recognized as expenses for the year in which they are incurred.
Approved Enterprises mat deduct an accelerated rate of depreciation.
Ordinary firms are exempt from tax on dividend earnings paid out of ordinary income on which corporate tax has already been paid. Approved Enterprises are liable to a 15 percent tax on dividends that they distribute to individuals.
B. Capital-Gains Tax

Tax Base

Real capital gains from the sale of business assets and securities.Securities traded on the stock exchange are exempt from
capital-gains tax, except:
(a)...securities that are racorded in the books of account of the taxpayer's business.
(b)...securities held by individuals who are deemed by the tax assessor to be a part of
........the business.

(c)...securities held by corporate principals (persons with 10 percent or greater stake
........in share equity).

Tax Rate

The initial tax rate on personal real capital-gains income is 30 percent; the other tax rates (45 percent and 50 percent)are identical to ordinary income-tax rates on earned income, commensurate with the taxpayer's bracket after the real capital gain is added to his/her other income.
Personal "inflationaty gains" created up to the end of 1993 are taxed at 10 percent. Inflationary gains generated since financial 1994 have not been taxed.
Since 1995, the initial tax rate on real capital gains of individuals aged 60 and over has been 10 percent.
Corporations' capital gains are taxed at corporate tax rate of 36 percent.

Exemptions and Reductions

Individuals' real capital gains from the sale of mutual funds and foreign securities traded on foreign exchanges are taxed at a flat rate of 35 percent.


C. Payroll Taxes

 (a) Employer's Tax

Tax Base Wage payments of public instructions, nonprofit organizations, and corporations whose entire income is exempt from income tax.

Tax Rate

Employers' tax is charged at 4 percent.

Exemptions and Reductions

(b) Value Added Tax on Nonprofit Organizations anf Financial Instructions

See section on Value Added Tax.

D. Property Taxes

 There are three ttpes of property taxes:
(1)...land-betterment tax;
(2)...teal estate purchase tax;
(3)...property tax.

(1)Land-Betterment Tax

Tax Base

Capital gains from the sale of real estate.

Tax Rate

The same rates that apply to capital gains.

Exemptions and Reductions

1....Land-betterment tax for real estate acquired up to 1948 is paid only 12 percent.
..... On real estate acquired between 1949and 1960, 1 percent par year is added.
2....Government institutions and National Institutions are exempt from tax on the sale of
...... real estate.
3....Sale of a residential dwelling is exempt from land-betterment tax once every four years.
..... (See below for changes in the exemption from 1997 on.)

Changes in Land-Betterment Tax Law Pertaining to Sale of Dwellings

The following amendments went into force in 1997:

1....If the dwelling sold in the seller's only dwelling, and if he/she did not own more than one
..... dwelling simultaneously during the four years preceding the sale, the seller may invoke
..... the land-betterment tax exemption uf he/she has not sold his/her only dwelling 18 months
..... before the aforementioned sale.
2....The sale of two dwellings with a combined value of up to NIS 1,298,000 (in the course
..... of 1998) is exempt from land-betterment tax once in the taxpayer's lifetime, as stated in
..... Paragraph 49(e)(2) of the Land Betterment Tax Law, 5723-1963. The value ceiling is
..... adjusted at the beginning of each year by the rate of increase in the Consumer Price Index.
..... The exemption is awared on the condition that the person selling the two dwellings has
..... purchased during the year preceding the sale of the second dwelling, or will purchase
..... in the year following said sale, another dwelling that is worth at least 75 percent of the
..... value of both sold dwellings.
3....A dwelling unit that does not meet the criteria of "eligible residential dwelling", as sated
..... in Paragraph 49(e)(2) of theLand Betterment Tax Law, 5723-1963, is not exempt from
..... land-betterment tax at point of sale. Most dwellings are used for business purposes,
..... as either rented or owned premises. This provision went into effect in January 1998.
4....The Minister of Finance, per approval of the Knesset Finance Committee, is entitled
..... to deem a dwelling used for educational or religious purposes as a dwelling used for
..... residential purposes, the sale of which is exempt from land-betterment tax.

(2) Real-Estate Purchase Tax

Tax Base

The tax is applied to the price of purchase of real estate (dwellings, Farmsteads buildings, businesses buildings, and land). Its rates follow:

Table VI-4
Real-Estate Purchase Tax Rates

(NISand percent-as of April 16, 1999)
Type of property Minimum price Maximum price Percent of purchase price
Dwelling 0 424,855 0.5

424,856 659,405 3.5

659,406+
4.5




Farmstead 0 203,566+ 0.5

203,566+
5.0




Business building and land

4.5



Source: Land-Betterment and Real-Estate Purchase Tax Regulations

 The real estate purchase tax brackets are adjusted quarterly by the rate of increase of the housing purchase price index. The Knesset recently amended the Real-Estate Purchase Tax Law, effective January 1, 2000, to raise the maximum tax rate from 4.5 percent to 5 percent on all types of properties. The amendment also eliminates the first tax bracket (0.5 percent for the purshase of a dwelling by one who already owns at least one dwelling, so that these dwellings will be taxed in the 3.5 percent and 5 percent brackets.

Exemptions and Reductions

1. ...Real estate acquired by National Institutions, as listed in Paragraph 4 of the Land-
.......betterment (Real-Estate Purchase Tax) Regulations, 5735 - 1975, are exempt from
..... real-estate purchase tax, as is real estate acquired by foreign countries, as stated in
..... Paragraph 15 0f the Regulations.
2....For acquisition of dwelling, building, or business, and for acquisition of land for
..... construction for residential or business purposes (all of which up to a maximum value)
..... by persons who have immigrated to Israel in the past seven years, real- estate purchase
..... tax is applied at the limited rate of 0.5 percent. The ceiling, set at NIS 995,260 in April
..... 1999, is adjusted on a quarterly basis commensurate with the increase in the housing
..... purchase price index. Beyond this ceiling, the tax rate is 4.5 percent.
3. ...Munitipal authorities that acquire real estate yhat does not grnerate income pay
..... real-estate purchase tax at 0.5 percent.
4....The statutory corporations listed in Paragraph 3 of the Land-Betterment Tax Regulations
..... (Real-Estate Purchase Tax), 5735-1975-including the National Insurance Institute,
..... the Ports and Raildoars Authority, Yad Vashem, Magen David Adom(emergency services),
..... and other in the same class - pay real-estate purchase tax at 0.5 percent.
5....Real estate acquired by public institutions for immediate or future use is liable to
..... real-estate purchase tax at 0.5 percent.
6....Real estate by disabled army veterans and beraved parents is liable to real-estate
..... purchase tax at 0.5 percent. This may be invoked twice in one's lifetime.
7....Businesses that relocate to development areas pay real-estate purchase tax at 0.5 percent.



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