Israel Signs Historic Tax Deal to Boost Diamond Trade
Translated & summarized from Israel Hayom by baba
Israel's Diamond Exchange and Tax Authority have signed a historic tax agreement for 2027-2028, aiming to make Israel a competitive global diamond trading center. Spearheaded by President Nissim Zohar and supported by Finance Minister Bezalel Smotrich, the deal offers fixed, low tax rates based on turnover and eliminates minimum income requirements. This positions Israel against rivals like Belgium and Dubai with more favorable tax and import policies, encouraging international companies to establish operations in Israel.
The story in 6 lines · by baba
- Israel signed a historic tax agreement to boost its diamond industry competitiveness by 2027-2028.
- The deal aims to attract international diamond companies back to Israel, challenging hubs like Dubai and Belgium.
- Participating diamond dealers will have fixed, low tax rates based on a percentage of turnover.
- The minimum income floor previously imposed on diamond dealers has been eliminated.
- Israel's new tax rate is significantly lower than Belgium's, and imports will be duty-free.
- The agreement is expected to restore Israel's position as a leading global diamond trading center.
Israel's Diamond Exchange and the Tax Authority have signed a landmark tax agreement set to take effect in 2027-2028. This deal aims to reverse a trend of diamond companies relocating to Antwerp and Dubai, repositioning Israel as a competitive and attractive global diamond trading hub.
The agreement, spearheaded by Diamond Exchange President Nissim Zohar, involved extensive negotiations with the Tax Authority and the Ministry of Finance. It fulfills a commitment made by Finance Minister Bezalel Smotrich two years prior to strengthen the Israeli diamond sector.
Under the new terms, participating diamond dealers will know their tax liability at the start of the year, as taxable income will be fixed at a low percentage of turnover. The minimum income floor, which previously required dealers to report significant income even with limited activity, has been abolished.
This reform positions Israel favorably against international competitors. Belgium's tax rate for diamond traders is 2.1% of turnover, more than triple Israel's new rate. Additionally, gemstones and jewelry will enter Israel duty-free, unlike Dubai's 5% tariff. The process for registering a foreign company in Israel is also streamlined and open to foreign nationals, contrasting with Dubai's potentially year-long registration period.
The agreement was developed through a joint effort led by Diamond Exchange Vice President Aviad Bushari and CEO Nadav Scheinberger, alongside Karim Kana'an, head of staff at the Tax Authority. Zohar expressed optimism, stating the agreement marks a "historic turning point" and invites global diamond companies to choose Israel, emphasizing its openness and competitive advantages.
Mentioned
