As discussed in the previous post, CGT applies when an asset is sold. There are a number of situations where the sale of an asset is exempt from CGT. The corollary is that if a loss is made in such a situation, it cannot be offset against other gains. There
Within the income tax law there is a large section that deals with the taxation of capital gains. A gain (or loss) is made when an asset is sold; the proceeds are compared to the cost and the difference taxed accordingly. This post will set out some of the basic
One of the frequently asked questions is what expenses a business can claim so as to reduce the tax bills. This is for both income tax (and by extension Bituach Leumi) and ma’am purposes (for osek morshe only). The basic rule is that you claim any expense that is wholly
Since 2003, Israel has joined the rest of the Western world in taxing its residents on their worldwide income. Israel has also signed a number of Double Taxation Treaties with other countries which set out various rules for which country can tax certain incomes and in what scenarios. The Double
Anyone receiving income from a salary knows that their employer will deduct tax at source, in accordance with the tax and Bituach Leumi laws (see also here). As such, the government gets regular tax revenues from employees; how often depends on the size of the employer. In a similar fashion,
As a freelancer, you are required to keep a set of records to keep track of your income and expenses. There are a number of professions that need to keep extra documents and records, and you should take advice from a professional to see if any of these apply to
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
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
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
As we described in an earlier post (see here), certain deductions can be claimed, even if they are not direct business expenses. This post will look at some of these in greater detail. The tax saving for the deduction allowed will depend on your marginal rate of tax, including Bituach
