Feel free to join the Tax in Israel Facebook group As previously mentioned, tax files in Israel are joint between husband and wife. The question therefore arises as to how joint income is taxed. In this respect, the law differentiates between earned (e.g. salary, self-employment, pension) and passive income. Passive
Feel free to join the Tax in Israel Facebook group Over the last fortnight or so, the tax authority has sent out a number of letters to Israeli residents whom it suspects have not reported of the income that they are thought to receive – and hence not paid the
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
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
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
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?
It is a fact of life that sometimes a business or investment doesn’t work out. In this situation, you are going to end up with a loss; i.e. More money was spent than recouped. In general, a loss can be used to offset other income or gains, as per the
So you’re filing an Israeli tax return, either because you are required to do so (see here for more) or because you want to (and presumably are due a refund, see here for more). The first step is to gather all of the relevant information regarding your income (for both
This post is a similar post from last year, with the required amendments etc. pertinent to the 2013 tax year. The deadline for filing your 2013 tax return is Monday 30th June 2014. The Tax Law states that every Israeli resident is required to file a tax return every year,
As discussed previously, capital gains tax arises when an asset is sold; the gain being the difference between the proceeds and the cost. It is important to define both of these terms. Proceeds The law sees the proceeds as the “fair-value” of the asset. This is defined as the going
