new fiscal year updates 2024
In honor of the new fiscal year, we have put together a number of important updates for you. We wish everyone a peaceful and successful new year and we pray for the safe return of our hostages and soldiers to their homes.
VAT reporting for an exempt dealer (Osek Patur)
The turnover ceiling for an exempt dealer for 2023 was NIS 107,692.
If you have not yet reported, you can report on the blue form you received in the mail (or will receive later). Alternatively, you can report easily and quickly on the
A Small Dealer (Osek Za’ir)
A small dealer is a business owner whose transaction turnover (as reported to the VAT) is below the turnover ceiling for an exempt dealer, i.e., NIS 120,000 for the year 2024. It should be noted that a licensed dealer with a transaction turnover below the ceiling can also be considered a small dealer.
Several conditions must be met in order to benefit from the status of a small dealer – mainly that the dealer is not an employer, that there is no income from an existing employer, that no more than 25% of the turnover of the business is received from a relative and/or a previous employer (up to 3 years), and that you did not give up the status in 3 recent years.
A small dealer is entitled to deduct expenses from his business turnover at a fixed rate of 30% of the turnover, without the need for proof of actual expenses at all. It should be noted that the 30% includes the deductions that the dealer usually receives for Bituach Leumi payments and deductions for pension premium payments, etc. At this stage, it is not clear how the status affects the obligatory Bituach Leumi payments (including the health insurance component).
In addition, a small dealer will be exempt from submitting a full annual report to the tax authorities, assuming that he has no additional reason that requires him to submit a report.
No clear guidelines have yet been published regarding the actual implementation and the reporting method. Therefore, at this stage, we recommend that dealers continue to keep proof of expenses for 2024.
When we have more information, we will provide an update.
Tax payments on rental income
If you have income from renting out a residential apartment in Israel, you can pay a reduced tax payment in advance at a rate of 10%. The discounted rate for 2023 will be given until January 30, 2024 and will be accepted as long as the apartment is used for residential purposes (that is, the income from the rent is not considered as income from a business). For payments and more information.
Exemption from rent for a single apartment
Starting in 2023, when owners of one apartment (only) rent it out, and at the same time rent an apartment in Israel for their residence (or make payments to a nursing home for their residence), the amount of rent paid can be deducted from the rent received, up to a ceiling of NIS 90,000 per year.
Payment of income tax advances
You can pay income tax advances for the tax year 2023. Payment ahead of time entitles you to an exemption from linkage differences and interest charges. The payment should be made on the Tax Authority website and will be entitled to a discount rate according to the following specifications:
- A payment received by January 31, 2024 will be considered a timely report and will be exempt from the full linkage differences and interest.
- A payment received during the month of February 2024 will receive a discount of 50% of the linkage differences and interest.
- A payment received during the month of March 2024 will receive a discount of 25% of the linkage differences and interest.
Reduced fee payment for companies and partnerships
You can pay the annual fee for 2024 at a reduced rate,
For more details and payment, go to the Corporations Authority website.
Companies can pay a reduced fee of NIS 1,262 until 31.3.2024.
As of April 1, 2024, the rate will be updated to the regular rate of NIS 1,675.
Partnerships can pay a reduced fee of NIS 1,257 until 31.3.2024.
As of April 1, 2024, the rate will be updated to the regular rate of NIS 1,670.
Reduced fee payment for non-profits
- Associations that are in the first two years of their activity and whose financial turnover is less than NIS 300,000 are entitled to pay a discounted annual fee amounting to NIS 166, in accordance with the Authority's guidelines..For more details click here.
- • Associations whose annual budget was less than NIS 300,000 between 2017-2019 and do not employ workers may apply for exemption from the payment of the fee, in accordance with the Authority's guidelines.For more details click here.