Tax declaration is an obligation for all Israeli taxpayers, whether resident or non-resident. It is important for taxpayers to understand who is considered to be an Israeli resident and who should therefore be obliged to declare their taxes.
If you have a sole proprietorship or are a shareholder in an Israeli company, or if you have income from bitcoins, a high salary, land abroad, assets abroad worth more than 1.8 million shekels, or if you have made a transfer of more than 500,000 shekels abroad during the year, you must file a tax return.
However, people who are considered Israeli residents at the end of the year may benefit from a tax allowance. People working abroad can sometimes benefit from a tax exemption from the host state. If you are an individual or a company, you may be able to claim additional tax deductions.
Understanding who has to file your tax return in Israel is the first step in a complex tax filing process. To avoid missing out on important deductions and paying more than you need to, it's important to contact a firm of chartered accountants, who can help you fill in your tax return correctly and understand your tax obligations.
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Watch out!
The French tax authorities may ask to see proof that you have declared your retirement in Israel. (Even during the 10-year period).
If you are concerned by this request from the French tax authorities, please do not hesitate to contact us.
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Do you have a question?
Contact us
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In a nutshell:
The law should be passed in the next few days.
The acquisition tax rate in Israel for investors will be increased to 8% (or 10%, depending on the bracket).
Objective :
Curbing the rise in real estate prices in Israel.
Your questions - our advice
What is the difference between an Osek Patur and an Osek Murshah?
There are a few differences:
- Ma'am (VAT): An Esek Patur does not charge Ma'am on its sales and cannot reclaim the Ma'am on its expenses.
An Esek Murshah must charge Ma'am on its sales. It can also reclaim the Ma'am on its expenses.
- Turnover Threshold: An Esek Patur must have annual turnover below the specified threshold (100,491 NIS in 2020).
The Esek Murshah has no turnover threshold limit.
Can I register two Osek Murshe for two separate businesses?
No, because the same individual cannot have two sole proprietorships. You will be able to practice in both businesses under the same Osek Murshe file.
For a married couple, each spouse can have their own Osek Murshe / Osek Patur.
Is there an annual threshold limit for an Osek Murshe?
No, there are no limits for an Osek Murshe. However, if an Osek Murshe has significant profits, you should consider opening a Corporate entity to reduce the legal exposure and taxation.
Can I change from Osek Murshe into an Osek Patur?
Yes. However, to be eligible to change from an Osek Murshe to an Osek Patur, your turnover for the two preceding tax years must have been below the threshold limit of an Osek Patur.
Is it possible to be an Osek Murshe for a short-term furnished rental business?
Yes. This is possible as short-term rentals require the registration of a business.
Can an Osek Murshe offer services to businesses and services to individuals?
Yes, there is no problem, the Osek Murshe can provide services to both individuals and businesses anywhere on the globe!
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