Country Manual Credits
Israel Permit All – Update 2025
out of Credit Institution’s Country of Establishment (RS, RT, BT & Def)
| Source of changes | Answers |
|---|---|
| Law / Regulation | Yes |
| New Position of the Authorities | No |
| Evolution of Expert’s Interpretation | No |
Regulatory Template, Behaviour Template and Definitions and Concepts
Material changes
The manual has been reviewed and updated. There have been two changes since last year’s publication:
Credit cards
As of June 2024, the issuance of debit cards and credit cards constitutes a regulated activity requiring a separate license from the ISA and is primarily governed by the Payment Services and Payment Initiation Regulation Law, 2023.
The ISA is still examining its position regarding the territorial applicability of the new law to foreign banks. It has issued a “no-action” letter according to which, until further notice from the ISA, such foreign banks do not need to apply for a license in connection with their existing activity.
Withholding tax
The Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date. We can confirm that there have not been any relevant legal or regulatory changes in Israel since the last update, with the exception of the withholding tax rate, which has been reduced from 25% to 23%, aligning it with the corporate income tax rate. Additionally, the definitions of permanent establishment and reporting obligations have been clarified to improve understanding of when income is taxable in Israel and under which circumstances reporting is required.
Non-material changes
Some content has been amended and/or slightly reworded (without introducing material changes) to reflect the regulatory situation/current interpretation of the regulatory framework more accurately.
For more information, please contact us: info@brpsa.com
Geneva, August 12th 2025