Tax Deal Aims to Boost Israel's Diamond Trade
October 11, 26
(IDEX Online) - The Israel Diamond Exchange (IDE) says a new voluntary tax arrangement could help boost traders' competitiveness against Antwerp and Dubai.
It provides them with greater certainty and could, in some cases, lower their tax bills.
Diamond dealers who opt into the system for 2027 and 2028 will have their taxable income calculated in advance at 1.3% of turnover.
The current system required them to declare a minimum level of taxable income even if their actual profits were lower. The new arrangement removes that minimum-income floor, potentially reducing tax bills for some dealers.
The agreement follows an initiative led by IDE President Nissim Zuaretz, who worked with the Israel Tax Authority to secure the deal.
Taxable income for diamond dealers in Belgium is calculated at 2.1% of turnover, compared with the new 1.3% Israeli benchmark, according to Israeli news website ICE.
The deal is aimed at encouraging dealers to stay in Israel and attracting international companies to the diamond hub at Ramat Gan.
"The signing of the agreement marks a historic turning point for the Israeli diamond industry," said Zuaretz.
"After years of declining competitiveness against international centers, we set a clear goal: to restore Israel's standing as a leading global trading center, and today we are making that happen."
He said the agreement would provide dealers with certainty and stability and put the exchange alongside Antwerp and Dubai as a leading trading center.
The agreement comes as Israel's diamond industry struggles to recover from years of declining activity.
Diamond exports fell to $3.6 billion in 2025, from $4.9 billion in 2024, $6.4 billion in 2023 and $9.2 billion in 2022, according to Israeli financial newspaper Calcalist.
The decline continued in the first half of 2026, when net polished-diamond exports fell 22.3% year on year to $626 million, compared with $804.5 million in the same period of 2025.
Pic shows the Israel Diamond Exchange, in Ramat Gan.