Updates and Enddates

June 18, 2013

Shalom loyal fans!
I haven’t posted here in over two years! I apologize, but I think there evidently is enough information already on the blog to help 90% of the people and issues that they have.

But I have quite a few things to say, not necessarily in this order:

1. Doch Shnati Annual Tax Return deadline has been fluidly postponed again this year. It is the end of June, so you have some time yet.

2. I just called Mas Hachnassa, and they said I do not have to appear in person at their office to submit my printout of my doch. I can put both copies in the mail (my office is Jaffa Road 236, Jerusalem) and they will stamp my copy and mail it back to me. Kewel!

3. That printout is from the online doch shnati that everyone has to do nowadays. I never posted about it (tsk tsk). It really is quite easy. Some tips:
a. use Microsoft Internet Explorer (probably impossible otherwise).
b. Prepare the doch on paper first, so all you have to do is copy. Otherwise, you will spend too much time on line and perhaps lose your work.
c. Save frequently.
d. Other suggestions all apply as before, when completing the doch by hand old fashioned.

4. (Hidden sneakingly) I closed my tik! Because when doing my USA taxes for that $1000 a kid kickback, my accountant told me that an atzmai has to pay a $1000 fee to the IRS! So when you factor this in, the luxury of having an Israeli tik without having enough clients that require it can be very expensive.

I also got a j-o-b, so I am making money without needing a tik, so that pretty much clinched it.

If I will ever want to open a tik again, I can simply google “opening a tik” and find a dozen videos about the Simpsons (?) I mean, “opening a tik at mas hachnassa”, and find a whole bunch of information that some kinds soul wrote since February 2008…

5. Closing a tik, btw, is also easy and not scary.
a. Go to VAT offices on Kanfei Nesharim 66 (not 236 Jaffa). This is even if you are an osek patur, that is, had nothing to do with VAT de facto.
b. Tell them you want to close your tik. You will fill out a form and undergo a short meetign with a nice clerk. In fact, iirc, I filled out the form with the clerk’s help.
c. When you get your copy of what they give you, go downstairs to the modi’in, tell them you closed your tik in Ma’am and need to close it in Mas Hachnasa, they give you a form to fill out, you do that, submit it, and voila! You’re done. NOTE: I did this in Kanfei Nesharim even though I am really affiliated with Jaffa 236. I just wrote in big letters (as someone told me to) “Chuliyah 46” or whatever the number was, and they said it would get there in internal mail.

There you go, kind and faithful readers!
I hope this blog will continue to help people, and please continue to write if you have any questions. Even though I am no longer in the game, I still remember the rules, and as they say, “those who know, do, those who don’t so, teach.” Or something like that.

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Doch Shnati Deadline Extended !(what a surprise)

May 4, 2011

Hi loyal fans!

I apologize for not updating this blog as frequently as I should. Please submit your request for your money back in triplicate:-)

Anyway, great news!

As I had a feeling would happen, Mas Hachnasa has extended the deadline for submitting the doch shnati tax return. It was scheduled to be April 30, 2011. This was three days after the end of Pesach, and Shabbat, by the way.

Anyway, nu nu nu I was a naughty boy and didn’t submit my form till then.

But as I said, I had a feeling it would be extended.

So today I succeeded in finding a phone number where someone answered. 02-6559559 ext 6 then 2. That brought be to Galia in the Mateh, and lo and behold, she answered the phone!

So I asked her if there has been an extension. She said I think so, wait a sec. She asked a colleague and he said yes (get this) till June 30! That’s right, not one month, but TWO MONTHS extension!

You can all go back to sleep now.

BTW, you have to submit it by Internet online starting this year. Bli neder, I will report how (easy it is) to do this.


a little more about osek patur plus sachir

March 6, 2011

a message to me, a reply in a comment somewhere on this blog, and a repost here in its own post..

Dear Chana Leah,

Thanks for writing, sorry for the time lag in responding, I guess you get what you pay for:-)

I have been reading your blog on-and-off for a while. I just opened an osek patur, but I am still working in a regular “sachir” job part-time. I wanted to ask you the following: Will this affect the taxes that I will pay at my sachir job or as an osek patur?

>>I remind you, my “advice” is not professional, just my educated guess. Depending on your salaried income, it probably will not impact. I don’t have the exact numbers, but from what I understand, if your combined income is under a certain number, you do not pay more. See below>>

If so, do I need to visit Te’um mas or any other office to fix this?

>>The question isn’t how much tax you will pay, but how much people will withhold from you. Ultimately, around Pesach you will go to the free advice hours, and they will help you complete your tax return (doch shnati) and tell you how little if any tax you will have to pay. But until then, you should go the Mas Hachnasa and get a teum mas, so your salaried job won’t deduct more than he should, and your clients won’t think they have to withhold at source (nikkui mas bamakor). Getting a teum mas is painless, just takes time. I understand that you can do it online nowadays. Taxes.mof.gov.il or something like that.

Thanks for your help, Chana Leah

Thanks, Gidon Ariel


deductibles

January 4, 2011

Jacob wrote:

Gidon, thanks for your blog, it’s really helpful! I am at the point of making my decision now – patur or murshe. and before i go to a tax advisor i’d like to know as much as i can. Can you please advise, whether osek patur can have deductibles like partial car expenses, gas, electricity, office rent, etc? I do not mean VAT, but reduction of the final profit i’ll get to pay taxes from? Or the taxes are calculated from my “brutto” income?

Someone also said, i cannot do web site support and development as osek patur, even if i get less than64k a year. Is it really so?

I’ll really appreciate your help.

Here’s my answer:

Remember, I am not an official tax advisor, just a fellow shnook who tries to help and be helped;-)

From my understanding, an Osek Patur makes so little money, they are patur (not required to) collect and foward/pay VAT tot he VAT authorities. This comes to about 64K NIS a year (give or take a few 10k’s).  From my understanding, if you are making so little money a year, you are not going to be paying mas hachnasa to the mas hachnasa authorities, either. So “deductibles” are immaterial. The idea of deductibles is to deduct their value from your brutto gross income, and then calculate the tax you owe. Since you are starting with zero tax owed, you can’t go lower than that:-) PS this is what happens to me and so I am lax with collecting “deductible expense” receipts like cab fares, ink, computer, etc.

If you do end up owing taxes cause you make more than the minimum, than the bottom line is easy: was this expense instrumental in generating income for you. Would you have been able to generate income without expending for this. The partial expenses you list are maybe hazier than an ink cartridge, but you can and should ask on internet forums, this is a simple question.

>>Someone also said, i cannot do web site support and development as osek patur, even if i get less than64k a year. Is it really so?

Don’t tell that person about me, that’s exactly what I do:-) My declared business (iirc – they strangely do not give you a copy of your request to open a business including the field where you describe your services – I spent about an hour crafting that sentence!) was “Office Services, Translations and Internet services”.  I think “sherutei Internet” should do the trick for you too.

 


Tium Mas, Osek Zair, Unemployment benefits

July 10, 2010
Here’s a question someone sent me, instead of asking him to post it here and only then responding to it on this blog, I an cutting the bureaucracy and posting it directly. Your comments appreciated:-)
—–Original Message—–
Sent: Thursday, July 08, 2010 11:42 PM
Subject: tax status query
shalom,
i came across your very interesting and helpful website through a google search.
>>thank you shucks:-)
i was hoping that you may be able to answer a question that i have. once in a while, i do freelance work as a translator and recently i was asked to do some for someone working at an institution that requires me to provide a to’em mas.
>>that would be a ti-um mas
the issue is that i am officially listed with bitu’ah le’umi as ‘unemployed’ because i do not work and i have no income. (i likewise receive a significant discount on arnona, as a result.)
since this is a short-term engagement and i do not expect to receive much money (at most maybe NIS 10 000, probably much less)
>>this is NOT a small amount of money! If you would have said 100 NIS or even 500 NIS, then maybe…
, (1) how do i provide a to’em mas? (is it by following the steps mentioned above, namely, becoming an oved za’ir?)
>>If you are currently listed as a lo-oved, collecting bituach leumi unemployment benefits, then as far as I know, you cannot work for money at all to make it worth your while. I thought otherwise myself once, even asked the clerk at the bituach leumi desk, probably misunderstood her, and ended up eating the rotten fish, getting smacked, and being exiled from the city.
if so, (2) how does this affect my status as ‘unemployed’, since i will essentially still be unemployed after this is finished?
>>I would suggest that if you want to continue collecting unemployment benefits (which as far as I remember last no longer than six months anyway) then do so.
But if you can hustle up some 10K jobs, even 300 NIS jobs, open up a tik and get to work! See other posts on this blog for how-to’s.
Again, others might encourage you otherwise, but I would strongly not try to dance at two weddings here.
all of this is very new to me, so i would appreciate greatly any thoughts you may have.
thanks so much,
david

Comprehensive guide to opening a business in Israel

June 30, 2010

I am so glad that I did not write this post such a bombastic title, I am not deserving!

As many of you know, Rachel Berger is a senior executive (to use Old Countryspeak) at Nefesh Benefesh, and if I haven’t plugged that organization until now on my blog, my bad, here it is.

Anyway, somehow I came across this guide, and then found it was barely findable, so I am assuming Rachel won’t mind my posting it here. As a non-professional, I do not attest to the correctness of her writing, nor of mine, blah blah blah. YMMV.

********************************************

Date: Aug 21 2009 – 5:46pm

Establishing a Business

Step 1: Opening a File for VAT
To open a Tik (file) for Ma’am (VAT), you will need to go to the local tax office. To find the local tax office, check online or in a phone directory under “Mas Hachnasa” (income tax). You will need to bring your Teudat Zehut (ID card) with you and fill out forms with the required information. The type of Tik that you open depends on how much you plan to make a year, i.e., the scope of your business.

If you expect to make under 70,000 NIS: Open a Tik for an Osek Patur, which means that you are exempt from Ma’am and – basically – do not need to interface with the income tax offices, which is very convenient. You will need to buy a Pinkas Kabalot (receipt book) so that you can issue receipts for your clients. A Pinkas Kabalot can be found in any office store. can will use the receipts from this Pinkas for bookkeeping purposes.

If you expect to earn over 70,000 NIS: Open a Tik for an Osek Morshe. You will receive an official Ma’am book. Clients will be charged Ma’am and you will basically be required to forward the Ma’am that they pay to the Ma’am office. When you sign up, make sure to ask the exact details of where and how you make the payment.

Step 2: Mas Hachnasa (Income Tax Authorities)
To open a file as an Oved Atzmai (freelancer) , you need to take the Osek Patur or Osek Morshe certificate to the Mas Hachnasa (income tax) office. Find the department in Mas Hachnasa that handles freelancer, and fill out the necessary paperwork. Once you’ve completed the registration, you will be required to submit a tax form once a year, which you will be receiving in the mail from the tax office.

Buy an accountant book – Sefer Tikbulim V’Tashlumim – at any office store, and use it to keep track of your payments and expenses. If you are careful about recording your transactions, it will make it easier to fill out the annual tax form.

Save all of your receipts and relevant paperwork, for a period of seven years. While noone wants to be audited, it does happen, and the only way to protect oneself is by saving all of the necessary documents.

An Atzmai who works from home can deduct some expenses from home bills such as electricity, internet, phone costs, Arnona (property tax), etc. The percentage of the deduction is based on the area used for the business. For example, if a house has four room and one of the rooms is used for business, the deduction that is recognized would be a quarter of the total cost. For more information about what can be deducted, speak to a qualified accountant.

Step 3: Bituach Leumi
When you open a file at Mas Hachnasa, a file is automatically opened for you at Bituach Leumi (National Insurance Institute).

The Bituach Leumi office will send you a form requesting your employment details, including any pay stubs that you have, and an Ishur (statement) from the bank providing that you are the owner of your bank account.

Once you submit this form, Bituach Leumi deducts 9% to 16% of your income as either Bituach Leumi or Mas Briut, depending on how much money you earn. The exact amount that will be deducted is listed on the Bituach Leumi website (HYPERLINK “http://www.btl.gov.il/”www.btl.gov. il).

Step 4: Declaration of Capital
Approximately every four years, you will be asked to submit a declaration which indicates your net worth, including your earnings and any properties that you own. It is recommended that an accountant with expertise in Hats’harat Hon prepare this form on your behalf.

Rachel Berger
Senior Career and Business Developer
NefeshB’Nefesh


“Many Happy Returns!”

May 13, 2010
Helping You to Keep the feeling of “Many Happy Returns!”
Guidance Bureaus open at your service
The assistance bureaus for guidance in filling out form 1301 (Annual Tax Return) are open for use by those required to complete an annual return (form 1301) in the offices of Mas Hachnassa around the country, from 2:30 to 6:30 PM Sun through Thu (except erev chag and chag).
The bureaus will be open until June 10, 2010, the Tel Aviv (Shefa Tal street #12) and Gush Dan offices will be open until July 29 2010.
Eilat offices open only Mondays and Wednesdays, Ramle offices open only Sundays, Tuesdays and Thursdays.
Translated by Mr Atzmai.Wordpress from