What's "better"? Ossek Patour? Ossek Mourché?


Many people decide to take the plunge and open an Ossek in Israel.

The question then arises: what is the best tax structure in Israel? Ossek patour or mourché?

It's very important to distinguish between the two options, and to understand the tax implications.

Being self-employed in Israel: 2 choices - ossek patour or mourché

1. Ossek Patour

A self-employed person whose annual sales do not exceed a specific amount.

This sum is reviewed each year by the VAT office and is 102,292 shekels for the year 2022.


Below is a table showing the authorized annual thresholds for recent years:

Any self-employed person whose annual sales do not reach this amount will not have to pay back the VAT collected from his customers. Nor will they be able to reclaim VAT on payments made to their suppliers.

The Ossek Patour offers significant tax advantages. There are also far fewer tax constraints and obligations. These include the frequency and complexity of reporting to the tax or VAT authorities.

2. Ossek Mourché

This is usually a self-employed person whose annual sales exceed the Ossek Patour ceiling.

There are, however, a few exceptions for activities that must be registered as Osek Murshe and cannot register as Ossek Patour.

LIRE AUSSI: Who can't register as an Ossek Patour?

Any self-employed person whose annual sales exceed 102,292 (for 2022) will have to pay back the VAT collected. In return, they will be able to reclaim this VAT on payments to their suppliers.

In addition, the Ossek Mourché must report monthly to the VAT office and the Mas Ahnassa. (In some cases, he must declare VAT every 2 months, depending on annual sales).

Like Ossek Patour, it must also file an annual tax return and submit an income statement.


Any self-employed person who starts out as an Ossek Patour but, over time, exceeds the authorized annual sales figure must obligatorily "switch to Mourché".
The exemptions granted to Patour no longer apply to him.

The same applies to a self-employed person who, when setting up his business, knows that in his first year of activity he will achieve sufficient sales to be classified as a Mourché, so he should define himself as a Mourché from the outset.

When is it still advisable to open a Mourché, even if you don't have to?

  • If you sell your products/services abroad

When you invoice your customers abroad, you are exempt from paying VAT. However, you can reclaim VAT on your payments to your suppliers in Israel. In many cases, it is therefore preferable to be a Mourché company, as you will reclaim more VAT than the Mourché structure will cost you.

ALSO READ: VAT at 0% also exists in Israel.

  • If you have employees

If you're Ossek Patour but have one or more employees, it's not "logical" that you can afford to employ them when the sales you generate are relatively low. This kind of "scheme" attracts the attention of the tax authorities.

We strongly recommend that you avoid it.ALSO READ: Israel's minimum wage goes up!

A little tax advice to help you save several hundred thousand shekels a year.

  • If you receive dividends from a foreign-based company.

When you are a shareholder of more than 10% in a foreign company, and you receive dividends, it is often advisable to open a Mourché.

If you receive a dividend from the French company in which you are a shareholder, you will be taxed in Israel at 30% on this dividend.

But if you receive this dividend as an ossek mourché (via tax optimization), you can, subject to certain conditions, pay only 10% of tax on it instead of 30%.

Your questions - our advice

  • Is it possible to switch to Mourché without having reached the annual ceiling?
  • Can you become a Patour if you are already registered as a Mourché?
  • Can an Ossek Patour bill abroad?
  • Does an Ossek Patour have to contribute for his retirement in Israel in the same way as an Ossek Mourché?
  • Does an Ossek Patour pay as much Bitouah Léoumi as an Ossek Mourché?
  • What are the tax consequences if a self-employed person is also an employee?
  • What are the risks if I don't declare my income?

At Dray & Dray, we offer you the ideal support solution, enabling you to optimize your tax resources in full compliance with the law.

As a firm specializing in tax optimization for SMEs, and in negotiating with the authorities, we ensure that you receive top-quality advice and support.

We regularly provide tax optimization advice to help you minimize your tax liability.



Kanfei Nesharim 68. Merkaz Oranim.

Tel Aviv

31 boulevard Rothschild


Phone : 02 631 9000
Fax: 02 631 9005
Email : office@cpa-dray.com

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