Breaking Update
Natural Resources Windfall Tax Hits ₪8.8B
Israel's Tax Authority announced natural resources windfall tax collections reached ₪8.8 billion by 12/31/2025, with ₪7.3 billion in final levies.
The Tax Authority announces that the total levies collected by 31/12/2025 for oil profits and excess profits from natural resources amounted to NIS 8.8 billion, of which NIS 7.3 billion are final levies. In total, approximately NIS 1.3 billion were collected in 2025, compared to approximately NIS 1 billion in 2024. Approximately NIS 1.2 billion became final, compared to NIS 1.4 billion in 2024.
Non-final levies are levies collected as advances or as withholding tax during the tax year, and their collection is not yet final. After the end of the tax year, according to the amount of the levy calculated in the annual report submitted, the levy will become final, in whole or in part. Final levies are levies collected according to annual reports submitted by the owners of oil and natural resource rights, as well as levies collected following a final assessment.
The Tax Authority transfers the collected levy funds (final and non-final) to the Accountant General at the Ministry of Finance on a quarterly basis. The Accountant General manages the non-final levies in a fund for an interim period until they become final, and transfers the final levies, along with investment profits (or net of losses), to the State of Israel Fund on a quarterly basis, after they have been converted to a foreign currency amount.
The levies for excess profits from oil and natural resources are collected in accordance with the Natural Resources Profits Taxation Law. According to this law, the funds received from the levies will be managed in accordance with the provisions of the State of Israel Fund Law. The purpose of the fund is to manage the state’s revenues from levies on profits from natural resources with a long-term economic perspective to maximize profit and to ensure the continued existence of the fund for future generations. In addition to the levies on oil profits and excess profits from natural resources designated for the State of Israel Fund, oil rights holders and natural resource utilization rights holders also pay income tax and royalties, which enter the state budget on an ongoing basis.
Data by Year:
Cumulative Data As Of | Levy Collected in Billions of NIS | Of Which Final Levy in Billions of NIS |
31/12/2023 | 6.55 | 4.7 |
31/12/2024 | 7.5 | 6.1 |
31/12/2025 | 8.8 | 7.3 |
Data by Quarter for 2025:
Cumulative Data As Of | Levies Collected in Millions of NIS | Final Levies in Millions of NIS |
31/03/2025 | 7.8 | 6.1 |
30/06/2025 | 8.2 | 7.2 |
30/09/2025 | 8.5 | 7.3 |
31/12/2025 | 8.8 | 7.3 |
