Israeli tax authorities increase tax benefits for parents in Israel.It's well known that since 2012, parents of children under the age of 4 benefit from tax credits in Israel. (Nekoudote Zikouye). These tax credits considerably reduce taxpayers' tax liability. Thanks to the new reform initiated by Moché Cahlon, parents will receive significant assistance every year.
The aid has been definitively adopted!This aid was originally voted for 2017 & 2018 only. During February 2018, Deputy Moché Gafni decided to make this directive final. Parents will therefore benefit from additional deduction points until the year their child(ren) turn 5. Read also: Your children pay your taxes in Israel.
Big tax savings for parents!This reform was adopted to help the middle classes. Thanks to this reform, the import tax on shoes, children's clothing and smartphones has been abolished.
But the real plus lies in the increase in tax credits for parents in Israel:
- Tax credits for children will be granted up to the sixth year. (Instead of 4).
- Over the same period, tax credits were increased by more than 20,640 Shekels a year.
A gift that can exceed 20,000 shekels a year.Here are the tax credits available to parents:
- In the year of the child's birth, the parent will receive 1.5 Nekoudate Zikouye (tax credit).
- For the next 5 years, the parent will receive 2.5 Nekoudate Zikouye / year.