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Contribution to Bitouah Leoumi on passive income.
Anyone under the age of 67 must pay monthly contributions to Bitouah Leoumi on passive income in Israel.
A minimum contribution for people not working.
Those who do not work and have no income pay a minimum monthly national insurance contribution of 71 shekels and a minimum health insurance fee of 104 shekels.
In total, the monthly contributions amount to 177 shekels per month for a person not employed in Israel.ALSO READ: What is Bitouah Leoumi?
Passive" income is also subject to the Bitouah Leoumi contribution.
Those who are not working and have an income other than active income must pay National Insurance and Health Insurance contributions as a percentage of their income, as shown in the following table:
Updated on 01.01.2021
1) Contribution on the portion between 25% and 60% of the average wage. (Between 2,638 shekels and 6,331 shekels per month).
On this tranche, the contribution will be 9.61% of the profit made.
2) Contribution on the portion of the average wage above 60%. (over 6,331 shekels per month).
On this slice, the contribution will be 12% of the profit made.
Here's an example to help you understand.
Mr Cohen has an office in Jerusalem. The surface of the office is 125 M². The monthly rent is 90 shekels HT / m², i.e. a total of 11,250 shekels HT / month.
We estimate the monthly operating expenses of the property at 4,500 shekels ex VAT / Month (amortization of the walls, interest and credit repayments, agency fees, etc.).
Mr Cohen has no additional income, and is not employed or self-employed.
In this case, the monthly profit would be 11250 - 4500 = 6.750 shekels.
Mr Cohen's monthly contribution will therefore be broken down into 3 parts:
1 - On the portion below 2,638 shekels/month: 0 shekels.
2 - On the portion between 6,331 shekels and 2,638 shekels, the profit is taxed at (6331 - 2638) = 3,693 shekels. This amount is taxed at 9.61%, i.e.: 369 shekels.
3 - On the portion above 6,331 shekels, the profit is taxed at (6750 - 6331) = 419 shekels. This amount is taxed at 12%, i.e. 50 shekels.
Total Bitouah Leoumi to pay 419 Nis
