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
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,
