Israel and Diamond Exchange Agree on New Tax Regime to Boost Industry
Translated & summarized from Cursorinfo by baba
Israel's Tax Authority and the Diamond Exchange have agreed on a new preferential tax regime for 2027-2028 to boost the nation's diamond industry. The reform eliminates mandatory minimum income declarations, setting taxes as a fixed percentage of turnover, and aims to improve global competitiveness against rivals like Antwerp and Dubai. This comes after a significant decline in diamond exports in early 2026. The agreement is seen as a historic step to re-establish Israel as a major diamond trading hub.
The story in 5 lines · by baba
- Israel's Tax Authority and Diamond Exchange agreed on a new tax regime for 2027-2028.
- The reform eliminates mandatory minimum income declarations, simplifying business for companies.
- Taxable income will be a fixed percentage of total turnover, aiming to boost competitiveness.
- The agreement follows a significant drop in Israeli diamond exports in early 2026.
- Nissim Zuaretz called the deal a historic turning point for Israel's diamond trade.
Israel's Tax Authority and the Diamond Exchange in Ramat Gan have signed a significant agreement introducing a new preferential tax regime set to be implemented from 2027 to 2028. This reform aims to enhance the global competitiveness of the Israeli diamond industry, which faces strong competition from hubs like Antwerp and Dubai. A key change is the abolition of the mandatory minimum declared income requirement, simplifying business operations for companies. Under the new rules, the taxable base will be calculated as a fixed percentage of a company's total turnover. This contrasts with Belgium's current rate for diamond traders, which is 2.1% of turnover, significantly higher than the new Israeli agreement's rate. Israel also benefits from the absence of customs duties on imported precious stones and jewelry. The agreement comes amid a prolonged crisis in the sector, with official statistics for the first half of 2026 showing a 22.3% decrease in exports of polished diamonds and a 34.6% drop in rough diamond supplies. Nissim Zuaretz, President of the Diamond Exchange, described the agreement as a historic turning point, expressing confidence that these measures will help restore Israel's position as a leading global diamond trading center.
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