In the previous post, we discussed that employee benefits are subject to taxation. This post will look at some of the more common payments and benefits from employees, and how they are dealt with for tax purposes. Travel allowances The law requires that employers pay their employees reasonable travel costs
Most people look forward to receiving their monthly payslip, known as a תלוש משכורת or just tlush. The Israeli tlush is a highly complicated piece of paper containing a huge amount of information. Below I will set out some of the information that you should expect to see, and what
At the end of the last post, I made mention of the importance of section ‘ה on form 101. This section tells the employer whether you have another employment. If so, you need to indicate if this particular employment is your main job. If it is, the employer will tax
Over the next few posts, we will cover many aspects pertaining to employment income – relating to the obligations of both employer and employee, with specific focus on employee rights and taxation. As discussed previously, a person whose only income is their salary is not required to file a tax
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. Grants for 2012
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
