Bituach Leumi for self-employed
In the same way that employees are required to pay Bituach Leumi on their salary, so too is a self-employed person required to pay Bituach Leumi on their earnings (profit). The boundaries for the lower and upper levels of tax are the same as for employees, but the percentages to be paid are higher. This is partly due to the tax reduction available for payments of Bituach Leumi for those who are self-employed, and also because there is no employer contributing for this income. There are also different categories of self-employment at Bituach Leumi. These affect both the amounts that you pay
Setting up a self-employed business
Co-written with Rifka Lebowitz Rifka is a personal and business financial consultant, Visit Rifka’s site at www.rifkalebowitz.com Thinking of opening a small business? For many this is a dream to do what they love, but the bureaucracy can seem overwhelming. So we have written out the steps you need to take with the three government offices. It’s not that hard and can be done via a professional or you can do it yourself. We have sent many new Olim to do this themselves at the various government offices and most have come back successful. You’re starting to go into business, and have decided to start out
Form 101 for employees – 2014 version
Please feel free to join the Facebook group linked to this blog – search for “Tax in Israel” As previously discussed, all employees are required to fill in form 101 for each place of employment, and give it to the person in charge of the salaries. Technically, this needs to be filled in on the 1st of January (for continuing jobs), but for practical reasons it’s sufficient to have it filled out before the January salary is processed. If your employer doesn’t give you one, you can download a blank form from the tax office here. Below is a short guide to filling in the form
