2015 year-end tax planning
With the end of the tax year fast approaching, here are a few tips that may be relevant:
- If you haven’t already done so, make a claim for the Working Tax Grant(negative income tax) in respect of 2014 income. The deadline is Friday 25th December.
- If you are a business with inventory, take a count as close as possible near the year-end. The cost of each item should be listed alongside the quantities.
- Business owners should make top-up payments towards pension, Keren hishtalmut etc to take advantage of the tax breaks available. The same goes for salaried individuals who have private pension plans.
- If you pay Bituach Leumi without usng a standing order, pay by the end of the year in order to receive the deduction for tax purposes. (Those paying on standing order will have the January payment included in the 2015 certificate)
- Make donations to recognized charities (section 46), and ensure the receipt is dated 2015.
Start collating information for “short” tax returns, if relevant:
- For business owners, consider whether you need to increase the amount you need to pay on account for both income tax and bituach Leumi. If you don’t, expect to pay interest on the extra payments once the tax return is eventually filed. For Bituach Leumi, this will mean letting them know that you wish to increase by the end of the year. For income tax, voluntary payments can be made anytime. Interest is fully waived on payments made in January. 50% is waived on February payments and 25% is waived on March payments.