Tax refund on pension withdrawal
As a general rule, withdrawing funds from provident funds before the date set for this by law is taxed at a rate of 35% of the amount withdrawn.
The tax is deducted at source (before the money is transferred to a person) by the insurance company, when the funds are withdrawn.
There are credits and exemptions that can return the tax to the payer, at the time of withdrawal
resident credit points, provided they were not used for wages.
Exemption for the disabled according to section 9 (5) of the ordinance.
Full exemption for a withdrawal made by a relative for a permanently disabled person over 75% disability. The full section can be read clearly and precisely on the website of “Every Right” in the link –
In addition, it is possible to withdraw an inactive old pension fund in an amount below 8000 NIS tax-free. You can read a detailed explanation at the link –
There are certain cases in which it is possible to get approval for deducting a reduced tax rate in advance and we have the skills and knowledge to assist you with this.
In order to make a tax refund on a pension withdrawal, you must submit an annual report for the year in which the withdrawal was made and attach to it certificates of the withdrawal and the fund.
Pinko’s team of tax advisors have extensive experience and knowledge regarding tax refunds for pension withdrawals.
Our service team is happy to assist all our customers in locating the source of the withdrawal and obtaining the necessary documents from the provident funds – and thus we will save you time and trouble!
