Israel vs Germany
Corporate Tax Comparison
Time of Update: Israel: 4/04/2026 / Germany: 4/02/2026
Compare Israel and Germany corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Israel vs Germany Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Israel
Germany
General CIT Rate:
23
General CIT Rate:
Corporate income tax is 15%, plus a 5.5% solidarity surcharge on the corporate income tax, resulting in a combined rate of 15.825%. Trade tax applies separately and generally ranges from 8.75% to 20.3% depending on the municipality. According to legislative changes adopted in 2025, the corporation tax rate is planned to decrease to 14% in 2028, 13% in 2029, 12% in 2030, 11% in 2031, and 10% from 2032 onward, with the solidarity surcharge continuing to apply.
CIT Return Due Date:
Within five months after the end of the tax year.
CIT Return Due Date:
July 31st (or extended to the end of February of the following year if the taxpayer instructs a professional tax advisor).
CIT Payment Due Date:
If the remaining balance is paid before the end of the first month after the end of the tax year, the taxpayer should be completely exempt from any interest and linkage differences.
CIT Payment Due Date:
As stated in the assessment notice.
CIT Estimated Payment Due Date:
Taxpayers must prepay their taxes on a monthly basis before the 15th of each month. According to a fixed percentage of the company's turnover, there are 12 months of prepayments, or based on the previous year's tax assessment, there are 10 months of payments starting from the second month of the company's tax year.
CIT Estimated Payment Due Date:
Quarterly installment payments are due on the 10th day of March, June, September, and December.
Withholding Tax (WHT)
Israel
Germany
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0-25/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0/15
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Israel
Germany
General Capital Gain Tax Rate:
Capital gains are constrained by the normal corporate income tax rate.
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate tax rate.
Effective Tax Rate (ETR)
Israel
Germany
Composite Effective Average Tax Rate:
21.47%
Composite Effective Average Tax Rate:
26.59
Composite Effective Marginal Tax Rate:
16.63%
Composite Effective Marginal Tax Rate:
11.00
