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
Tax authorities around the world like to use a “standard-of-living” test to assess whether taxpayers are declaring all of their income. Essentially, someone with a low earning should not be living in a mansion – unless there’s some sort of decent explanation e.g. inheritance. In Israel, the system is more
In a previous post, we considered who was required to file a tax return. However, it could be that even if you are not required to do so, it will be on your interests – if you are due a refund. Any refund due to you is given back with
A very common investment for people is property, i.e. receiving rental income. For these purposes, property income refers to income from any type of property (rents), including land (i.e. ground rent). This post will not deal with gains made on the sale of any property. For tax purposes, the nature
In addition to Income Tax, Israel levies Bituach Leumi (National Insurance or Social Security) on earned income (and certain passive incomes). To all intents and purposes, this is another tax, although there are certain social benefits that accrue from making regular payments (e.g. maternity pay, disability pay, pension etc.). Bituach
In the previous post, we mentioned that a portion of employer contributions towards an employee’s pension scheme is not treated as a taxable benefit. In this post I will set out, in short, some of the laws regarding pension and severance pay. It is important to start this post by
