Israeli Banks Reach Agreement to Avoid Excess Profits Tax

Israel's Ministry of Finance announced on 19 March 2026 that an agreement has been reached with the Israeli Association of Banks that involves the banks transferring ILS 3 billion to the state in 2026 and an additional ILS 250 million in 2027. In exchange, a proposed law for the introduction of an additional tax on excess bank profits will be withdrawn. As previously reported, the proposed law…