How are RSUs taxed in Israel?

RSUs deposited with an Israeli trustee under a Section 102 plan are taxed at the capital gains rate (25%) when sold, provided the 24-month holding period is met. Without a qualifying arrangement — which is common with foreign employers — the fair market value of shares at vesting is taxed as employment income at the employee's marginal rate. Unlike options, RSUs have no exercise price, so the entire market value at vesting or deposit forms the tax basis.