Financial Updates for the 2023 Tax Year

23/01/2023

VAT return for the self-employed Osek Patur

Self employed persons must report to VAT their turnover (excluding expenses) for 2022 by January 31, 2023, to ensure that they are eligible to continue operating under the definition of an Osek Patur.
The income ceiling for an exempt dealer for 2021 is NIS 102,292.
If you have not yet reported, you can report in the blue form you received in the mail (or will receive later). Alternatively, it can be reported easily and quickly on the
Tax Authority website.
If you have exceeded the income ceiling, please contact your CPA as soon as possible.

For your information, the income ceiling for an exempt dealer in 2023 is NIS 107,692

Tax payments on rent

If you have income from renting out a residential apartment in Israel, you can pay a reduced tax rate of 10%, the discount rate will be given until January 30, 2023 and will be received as long as the apartment is used for residential purposes, and the rental income is not considered business income. For payment and more information.

Payment of income tax advances

You can pay the advances for income tax for the tax year 2022. Advanced payment entitles you to an exemption from the differences arising from the adjustment in the cost of living and interest. The payment can be made on the website of the Tax Authority independently and will be eligible to discounts according to the following specifications:

1. A payment received by January 31, 2023 will be considered as a
timely report and will be exempt from the full differences and interest.

2. Payments received during February 2023 will receive a
50% discount on differences and interest.

3. A payment received during March 2023 will receive a
25% discount on differences and interest.

Reduced fee payment for
companies and partnerships

You can pay the annual fee for 2023 at a reduced rate,
For more details and payment, visit the Corporations Authority website.

* Companies the reduce rate will be available until March 31, 2023 at
the amount of NIS 1215. As of April 1, 2023, the rate will be updated to
the regular amount of NIS 1,614.

* Partnerships the reduce rate will be available until March 31, 2023 at
the amount of NIS 1210. As of April 1, 2023, the rate will be updated to
the regular amount of NIS 1,608.

Reduced fee payment for nonprofits

• Non-profit organizations with a turnover exceeding NIS 300,000 Please note that you can pay the annual fee for 2023 at a reduced rate of NIS 1,215 until March 31, 2023, from April 1, 2023 the rate will increase to NIS 1,614. The payment can be made on the Corporations Authority website or by mail whilst referencing the charity number.

• Non-profit organizations that are in the first two years of their activity and have a turnover of less than NIS 300,000 are entitled to pay a reduced fee amount of NIS 160, in accordance with the Authority’s guidelines. For additional details.

• Non-profit organizations that between the years 2015-2019 their annual budget was less than NIS 300,000 and do not have employees may submit an application for exemption from the payment of the fee, in accordance with the Authority’s guidelines, For additional details.