At any given moment there are millions of employees and self-employed in Israel who are entitled to tax refunds from the state, most of them are not aware of this or do not act on the matter due to widespread Israeli skepticism. The thought of getting money back from the state doesn’t sound logical, but you’ll be glad to know that it’s completely the law. As part of dealing with the economic aspect of the crisis, and the state’s attempt to provide assistance, the tax authority released approximately 750,000 NIS to the credit of those entitled to tax refunds, including employees. It is important to note that these are not additional or new tax refunds for this period, but rather funds that were entitled to the rights of the beneficiaries and were delayed due to the routine procrastination of the tax authorities.

Life is dynamic – so is your money

During the Corona period, many lost their jobs and as of this writing, the percentage of unemployed in Israel stands at 30% and those who were not fired were reduced in their job percentages and needed to find additional income for themselves, and in this case, it is likely that the mix between the two incomes, may qualify them for a tax refund at the end of the year.

So who is actually entitled to tax refunds and why is it important to go through the process with a professional and experienced team?

Our tax payments are bimonthly, but the total calculation according to which it will be determined whether you are entitled to tax refunds or not, is an annual calculation. At the beginning of 2020, long before the avalanche brought by the corona virus, the employees enjoyed the normal salary and at that time the employers deducted the tax payments according to the higher tax bracket. In practice, already in March we all suffered a severe blow in the wing, a significant drop in the scope of the job and the bottom line in the paycheck while the withholding tax remains high and does not correspond to the change. Apart from the scope of the job, quite a few changes may occur during a tax year that change the face of the picture from the point of view of the tax authorities, therefore it is very important to be precise in the details and update on any changes. The relevant changes are: change in marital status, maternity leave, additional income, layoffs and more.

Look ahead – this is your annual report

Contrary to popular belief, there are cases in which employees are also required to file an annual report. Employees who earn more than NIS 641,000 per year and those who have additional income (income from rent, sale of securities, etc.). If your dealings with the tax authority are orderly and proper, there is no There is no reason for you to be afraid of demanding what you deserve back and this is where the important step of submitting the annual report comes in if you meet one or both of the criteria we mentioned above. This report is actually your moment (or ours, for you) to tell the tax authorities about your income, your expenses, the differences, the credits (did you donate money this year? Section 46A will make this donation worthwhile) and more. And reducing household expenses is critical, it is very worthwhile to carry out the process with the tax authorities, and we will be very happy to do it for you. In order to get the most out of it and to exhaust your rights, you need specific experience in tax consulting and tax refunds, and in-depth knowledge of the law and its frequent updates Especially in 2020 it may be a huge advantage and significantly increase the refund you are entitled to.

The bottom line – pay attention to the changes

We will all remember the year 2020 as a year that changed our lives quite a bit, on a social and personal level, but no less than that – on an economic level. The corona epidemic, the end of which we still do not see, has placed the biggest sticks in the wheels of the Israeli economy at the macro level, but under the words Israeli economy, there are people, employees, small or large business owners who have to recalculate their course almost every day due to these changes. If you also faced and are still facing changes in income in the current tax year, checking eligibility for tax refunds is not a bad opportunity for a small addition to the household. In order to exercise your rights, it is not enough to read a little on the net, you need to be experts in the field and this is exactly where we come into the picture😊

We are here at your disposal by phone: 03-60012403