Bituach Leumi pays a monthly allowance to mothers (as a general rule) of children aged up to age 18. It is paid on the 20th of every month, and deposited directly into the mothers’ bank account. As part of the budget, drastic cuts have been made to the allowance, with
As part of the new budget, taxes are rising across the board. We have already seen an increase in the VAT rate and property taxes are going up as well. Now, income taxes on earned income (e.g. salary, pensions & self-employment income etc.) are joining the club – in addition
VAT (value added tax) is a tax levied on business transactions, but borne by non-businesses, i.e. it is the private individual who ends up bearing the brunt of the tax. As a general rule, VAT is charged at the standard rate, which is currently 18%. The business is required to
Interest is income generated from the giving of a loan. This includes the easily-recognisable situations of a bank-deposit, as well as somewhat more obscure sources such as tax refunds (where the tax-man has effectively “borrowed” the money from the taxpayer) and period pay-outs on bonds. Taxation of interest falls into
The deadline for filing your 2012 tax return is Sunday 30th June. As previously discussed, the tax year in Israel runs from 1 January to 31 December, i.e. concurrent with the calendar year. Tax returns cover the year in question, and obviously cannot be filed until the start of the
In a previous post, I explained that tax credits reduce your gross tax liability in order to get to your final tax bill. As such, it is important to ensure that your tax is calculated to take into account everything that you are entitled to. It should be pointed out
The question of residency is important in determining a person’s status vis-a-vis their obligations to paying Israeli taxes. As previously discussed, Israeli residents must pay Israeli tax on their worldwide income, whereas a non-resident pays only on their Israeli income. Furthermore, with the 10-year exemption on taxation of non-Israeli income
One of the more common questions that an accountant is asked is “how much can I earn without paying tax?” Whilst the question is relatively straightforward, the answer is essentially “it depends.” This aim of this post is to give a very basic overview of how your tax bill is
The Tax Law states that every Israeli resident is required to file a tax return every year, and doing so late results in hefty penalties (in excess of 1,000 NIS for each month between the official deadline and the actual filing). That being said, a supplementary ruling to the law
מס הכנסה (Income Tax) is the primary tax authority in Israel, equivalent to HMRC in the UK and the IRS in the USA. Before going into depth on any one subject, it is worthwhile to look at some of the basic concepts within the Income Tax Law. Israeli residents are
