Bitouah Léoumi for independents
A self-employed worker in Israel must pay 3 types of taxes/social contributions:
- Income tax - Mas Ahnassa.
- Le Maam - VAT (except for Ossek Patour).
- Bitouah Leoumi for the self-employed - social contribution.
In this article, we will explain what the Bitouah Léoumi for independents in Israel.
You also have access to a simulation to calculate your Bitouah Léoumi in the rest of this article.LIRE AUSSI: Does every self-employed person have to pay the Bitouah Léoumi?
What is Bitouah Léoumi for independents?
Bitouah Léoumi for the self-employed is a monthly contribution.
This contribution is a kind of insurance that will cover you in the following cases:
- Unable to work due to accident.
- Prolonged illness.
- Milouim (army reservist).
- Maternity leave.
What's more, this contribution also forms part of your future pension in Israel.READ ALSO: Retirement in Israel
Bitouah Léoumi, how much does it cost?
This contribution is calculated on the basis of the self-employed person's accounting profit.
For the year 2023, here is the amount of this contribution:
- Up to a monthly accounting profit of 7,122 Nis, the self-employed person will have to contribute 5.97%
- Above 7,123 Nis per month, the self-employed person must pay 17.83 % for each additional shekel.
- Beyond 47,465 Nis, there are no more Bitouah Leoumi contributions.
Social security and health insurance contributions are not deducted at source for the self-employed, so you'll have to pay Bitouah Leoumi fees monthly on account.
Simulation Bitouah Léoumi.
[jotform id="210686649537064″ title="Bitouah Léoumi - independents in Israel "]
Here's an example:
The business is due to open on January 1, 2023, and the estimated monthly profit is 8,000 nis.
You'll have to pay 582 Nis monthly, or 6,984 Nis annually.
Finally, when you file your tax return, it turns out that you earned 108,000 Nis a year, or 9,000 shekels a month.
You should have paid 9,146 Nis, so you'll have to add (9,146 - 6,984 =) 2,182 Nis for your 2023 contributions.
Thus, contributions for 2024 will be based on the profit for 2023, i.e. on a profit of 108,000 Nis.LIRE AUSSI : Bitouah Leoumi for employees.
In a nutshell:
Bitouah Leoumi is a social security benefit.
The amount of social security coverage is the amount contributed at the time of the accident/disability.
So make sure your contributions are always up to date.
Our advice :
It's better be The Bitouah Leoumi will reimburse the "too much" rather than the "too little". The Bitouah Leoumi will reimburse the "too much" in any case. paid " at the balance sheet date.
But you will have "benefited" from greater social coverage during the year.
Your questions - our advice
- I've just opened my business. How do I know how much Bitouah Léoumi I have to pay?
- Can I change my profit estimate during the year?
- I'm self-employed but also an employee. How does the calculation work?