Shekel money bills.
(photo credit: REUTERS)
The Israeli tax year ended on December 31. The Israel Tax Authority wants to know how well we did. Which tax returns need to be filed with the ITA and when? Here are some of the deadlines that may apply to you.
Early filing and payment of any taxes due is encouraged.
Interest generally runs from January 1 this year on any unpaid income tax for last year, unless you pay by January 31. January 30: Israeli residential rental income, if you want to elect the 10 percent tax option without claiming expenses or depreciation. The alternative is 30%-50% tax on rental income minus expenses and depreciation. After this date, interest runs.
Osek Patur (Exempt Dealer) report to the VAT Authority, whether total 2015 revenues (before deducting expenses) were below the cap of NIS 100,000 in 2015 (the cap will be NIS 99,006 in 2016). The report can be made online or using a paper declaration form that should have been posted to you.
: For foreign securities sold in the second half of last year, report capital gains and pay tax. You will need to get data for each security sold – cost, purchase date, sale consideration, sale date, foreign tax paid – to claim a foreign tax credit against Israeli tax.
This is not necessary in the case of new residents or senior returning residents in their 10-year Israeli tax holiday regarding foreign income and gains if they became Israeli residents on or after January 1, 2007, for the first time or after living abroad 10 years.April 30
: Most personal tax returns, trust returns and small business tax returns – mainly if you have a small business or have untaxed investment income or if there is a family trust. Contact us if you are uncertain. See the attached checklist of things we need, preferably by February 28.May 31
: Most medium and large business returns – annual tax return for last year in the case of medium and large businesses if “double entry” books are kept (with debits and credits). In the case of companies, the financial statements must be audited.
Past unreported income – deadline for requesting voluntary disclosure procedure (amnesty) on an anonymous basis. The taxpayer’s identity is disclosed when the tax agreement is reached, whereupon the ITA checks that the person is not already under an inquiry. Assuming all goes well, criminal sanctions may be averted.
: Foreign securities sold in the first half of this year – similar to the reporting for the second half of last year (see above).
: Past unreported income – deadline for requesting voluntary disclosure procedure (amnesty) on a named basis.Is that it?
Not exactly; the above is just for starters. Businesses must file monthly or bimonthly returns for the purposes of their income tax/company tax, payroll income tax on salaries, National Insurance Institute payments and VAT.
The deadline is usually the 15th of the following month for paper filings at the post office, using checks to pay the tax installments, or the 19th in the case of online filings with tax payments using an Israeli credit card. Other filings are also needed from time to time.
Companies must file at the Companies Registry annual returns of their shareholders, directors and liens and pay an annual levy. Charitable public institutions and financial institutions face an array of reporting requirements.
As always, consult experienced tax advisers in each country at an early stage in specific cases.
firstname.lastname@example.org Leon Harris is a certified public