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Israel: Pillar Two global minimum tax rules approved by Parliament

Effective January 1, 2026

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february 10, 2026

The Parliament (Knesset) on December 29, 2025, approved legislation implementing the Pillar Two global minimum tax rules.

The legislation introduces a qualified domestic minimum top-up tax (QDMTT) applicable to multinational enterprise (MNE) groups with consolidated revenues exceeding €750 million in at least two of the four preceding fiscal years, and mandates compliance and reporting obligations to the tax authority, effective January 1, 2026.


For more information, contact a KPMG tax professional in Israel:

Moshe Weiss | mweiss1@kpmg.com

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