Tax and Purchase Tax – Indirect Taxes  Customs: Customs are levied on imported products in order to protect local production. Today most import to Israel (more than 90%) is exempt from customs due to trade agreements signed by Israel with a number of countries and blocks.  Purchase tax: A tax levied on purchase of consumption goods, mostly vehicles, cigarettes, alcohol, electronics and cosmetics. This tax is the same for both local production and imported goods.  Fuel Blo: A specific tax (in NIS per Litter) levied on all types of fuel. In addition to being a substantial source of revenue, its aim is to express the damages involved in fuel use in terms of health, environment, etc.

Marginal Tax and Tax Brackets Tax year Deductions and Credits Tax threshold Exemption Taxpayer Tax rebates Unified / Separate calculation Contesting administrative decisions of the Tax Authority 2 Taxes – Terms

100% Disabled or blind persons; Old age pensions, disability benefits, etc. that are paid by the National Insurance Institute or by a foreign country under its laws; Work dismissal compensation and retirement compensation; Compensation made to family members following a death of an employee; Some revenues of new immigrants and returning citizens. 100% Disabled or blind persons; Old age pensions, disability benefits, etc. that are paid by the National Insurance Institute or by a foreign country under its laws; Work dismissal compensation and retirement compensation; Compensation made to family members following a death of an employee; Some revenues of new immigrants and returning citizens. Exemptions Exemptions from income tax are given in special cases. Exemptions Exemptions from income tax are given in special cases. 3 Taxes – Terms

Marginal Tax and Tax Brackets Tax year Deductions and Credits Tax threshold Exemption Taxpayer Tax rebates Unified / Separate calculation Contesting administrative decisions of the Tax Authority Basic deductions and credits are intended to ensure that tax is not deducted from the basic income required for the subsistence of citizens. Tax is paid only for revenues over the basic amount, called the "tax threshold". For example: In the 2012 tax year, the tax threshold for a single male who is an Israeli citizen was 4,837 NIS per month. Tax threshold 4 Taxes – Terms