Working Pensioners in Israel: How to Choose the Right Tax Exemption Strategy One of our key areas of expertise is pension taxation in Israel. We help clients who have reached retirement age arrange their pension tax exemptions, a process known as kibua zchuyot. A detailed explanation of this procedure is available in a video on
In accordance with the directives of the Israeli Tax Authority, starting January 1, 2026, all public organizations approved under Section 46 of the Income Tax Ordinance will be required to report all donations (trumot) and donation cancellations through the Tax Authority’s Digital Donation Reporting System.
Effective January 1, 2026, Amendment 272 to Israel’s Tax Ordinance, commonly referred to as the Milchan Law, will come into force. The amendment introduces a significant change: repatriates who immigrate to Israel after January 1, 2026 will continue to enjoy an exemption from paying taxes on foreign income, yet they will be obligated to report and declare all foreign income and assets.
Tax Credit Points – Nekudot Zikui: Are You Using All Your Tax Benefits in Israel? Tax Credit Points: Are You Using All Your Tax Benefits?If you live and work in Israel, it’s important to know how to legally reduce your tax burden through tax credit points (נקודות זיכוי / nekudot zikuy). This mechanism is one
Made an early pension withdrawal – paid the tax. But can you get at least part of it back? We hear this question more and more often. Under current Israeli law, early withdrawal of pension savings known as tagmulim (the portion that actually forms your pension) is taxed at a flat rate of 35%. This
New Voluntary Disclosure Procedure (Israel, August 2025) On August 25, 2025, the Israeli Tax Authority published a new Voluntary Disclosure Procedure. At the same time, an operational directive was issued, detailing the process of submitting applications and reviewing requests. Why is this procedure important?It allows taxpayers who have violated tax legislation to correct their reports
Tax Benefits for Pensioners in Israel on Income from Securities The taxation of pensioners is a highly specific area of tax law. Once individuals reach retirement age, the rules change: certain tax benefits become available that are not granted to working-age taxpayers. The first important milestone is age 60. From this point on, passive income
Starting in January 2026, any business in Israel with a turnover of ₪500,000 or more must file a detailed VAT report (PCN). Until now, this level of reporting was required only from companies above ₪2.5 million, but the new threshold brings a much wider group of businesses into the system.
Relocating pensioners: what you need to know about taxes on pensions, rentals, and investments in Israel For many Israeli pensioners, retirement is the perfect time to relocate — whether to join family abroad, enjoy a milder climate, or find a more affordable and peaceful place to live. Yet with this move comes one of the
From the Tax Office with love… and a billDo Israelis have to pay taxes after renouncing residency? The question of tax residency is highly relevant both for new immigrants and for long-term Israeli residents planning to relocate permanently abroad. Such a move inevitably raises critical questions: What will happen to my tax status? How should