The tax will levied according to the same tax brackets as salaried income from domestic and overseas jobs.
Israelis' income from gambling, lotteries, and prize-winning activities will be taxed according to the same tax brackets as salaried income from domestic and overseas jobs, state new Ministry of Finance regulations published today.
Income from gambling and lotteries will be subject to a 25% withholding tax.
The regulations also place the tax-exempt ceiling on income from gambling and lotteries at NIS 70,000. The exemption applies to the total sum won in a single bet, lottery, or prize. The regulations will apply retroactively to July 1, 2003.
The regulations state that the tax will paid by the 15 of each month as reported. Israelis who received income from gambling or lotteries will have to fill all the pertinent information on special forms within seven days from the date the money was received.
The regulations do not apply to income from profits from illegal activities.
Published by Globes [online] - www.globes.co.il - on July 27, 2003