With much fanfare, the tax authority announced last week a one-page tax return for the smallest of businesses. The form can be found here. The form is designed to allow the smallest businesses – who wouldn’t reach the tax threshold anyway – to just report their income, without the extra pages relating to deductions and credits. However, it must be noted that the tax authority reserves the right to ask for a full tax return anyway, as well as any other paperwork deemed necessary; making this process somewhat meaningless is my opinion. Who can use the report? The explanation notes (which can be seen here) list five

The taxation of pension income is one of the most complicated areas of law due to the various and numerous exemptions available. Fully exempt pensions Pensions which are not subject to tax whatsoever include the Bituach Leumi old-age and bereavement pensions and reparations received by Holocaust survivors. Also fully exempt are disability pensions, whether received from Israel or abroad. A person receiving a survivors pension can receive the first NIS 8,470 per month (correct for 2014) tax free. Of any excess, 35% of the pension is also tax free, with the rest subject to tax. Other pensions In short, the exemptions start when the taxpayer reaches

Once you have filed your tax return properly (see here for more), the tax authority will issue an assessment of the taxes that you owe based in what you have filed. This is normally on three blue-backed pages (first single-sided and the other double-sided) of A4 size. They also send some explanatory pages. The first page is the summary of income and the tax calculation. The very bottom of the page is reserved for a payslip with which you can pay the taxes that you owe. Interest for a few weeks is normally built into the calculation; there will be a date by

A number of years ago, the government introduced a scheme designed to help workers earning very little. This grant, based on average monthly earnings in the previous tax year (hence the term “income tax”), was initially available only to those living in certain parts of the country. Who is eligible? You must meet the following criteria: 1. Be aged 55+ or aged between 23 and 54 and have at least one child. 2. You, together with your spouse, own no more than a 50% stake in any land or property (worldwide) that is not your residence. 3. Your average monthly earnings in 2013 (salary or