...

Tax relief on charity donations

Israel charity tax section 46

The Israeli government want to encourage you to donate and support charitable organizations in Israel. To do so, they introduced a tax relief on charity donations for individuals and companies. So, if you donate money to an Israeli approved charity, you'll be eligible to get a deduction on your tax bill.

How much is the tax relief on charity donations?

Individuals - can claim 35% of the amount donated. Companies can claim 23% (2020) of the amount donated. For companies, the relief will always be at the same rate as corporation tax.

So, if an individual donates ILS 1,000 to an eligible charity, they'll receive a tax credit of (1,000*35%) ILS 350.

If a company donates ILS 1,000 to an eligible charity, they'll receive a tax credit of (1,000*23%) ILS 230.

To claim tax relief on donations, to which charities can I donate?

Donations must be made to Israeli organizations and charities. When donating, it is important to check that the organization is approved under "Section 46" of the Tax Ordinance as an eligible charity. Donations to organizations which are not approved will not provide any tax relief for you on your tax bill. You can check the approval status of the charity on the Tax Authority website here.

How much can I donate in one year?

Whilst you are allowed to donate as much as you wish, there are a few points that should be considered regarding how much tax relief you'll be eligible to receive.

- Charitable donations can reduce your tax liability to zero but will not create a negative liability. Therefore, if you donate to charity when your tax liability is already zero, the Tax Authority will not refund to you part of the donations made.

- Your total donations during the tax year must be at least ILS 190 (2020) for you to be eligible to make a tax relief claim.

- There is an upper limit to how much charitable donations individuals can claim relief on:
- Donations up to 30% of your taxable income, and
- Total donations not more than ILS 9,350,000 (2020)

Tip - if you donate too much in one year, you can use the unclaimed relief for up to three years following the tax year.

Read: The Osek Patur Guide

Israeli tax relief on charity payments abroad

Generally, you will only be eligible to Israeli tax relief on donations made to Israeli charities. However, if you have foreign incomes, you can sometimes claim Israeli tax relief for charity payments made to organizations which are recognized in the country where your income is earned. For more information, don't hesitate to get in touch with us.

OUR OFFICES

Jerusalem

Kanfei Nesharim 68. Merkaz Oranim.

Tel Aviv

31 boulevard Rothschild

CONTACT US

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

Talk to the Experts

OUR VIDEOS

Our latest tax and accounting videos

In partnership with :
OUR LATEST ANALYSES

Read our latest articles & tips.

In partnership with :
Leasing in Ossek mourche
Osek Murshe

Leasing in Ossek mourche

Leasing in Ossek Mourche - Optimize your expenses and benefit from tax deductions with leasing for Israeli entrepreneurs. Discover the advantages and obligations of leasing in Israel

Read more "

Contact

Our offices in Israel

Our firm specializes in Israeli accounting and taxation, with in-depth expertise in Olim Hadashim benefits and tax optimization.

Our consultants in Tel Aviv

English speaking accountants in Israel
Address: 31 boulevard Rothschild, Tel-Aviv (Israel)
Phone number: 03-9446635
Fax: 03-9494682
Email: office@cpa-dray.com

Our consultants in Jerusalem

English speaking accountants in Israel
Address: Kanfei Nesharim 68. Merkaz Oranim
Phone number: 02 631 9000
Fax: 02 631 9005
Email: office@cpa-dray.com