Dear Clients,
If you had any income in 2024 that was not subject to a tax withholding or for which advance tax payments were not made, we recommend that we conduct a tax assessment for you to make an advance payment for this year.
These incomes may include:
- Income from foreign securities (dividends, interest, capital gains)
- Income from foreign real estate (rent, sale of property, etc.)
- Income from renting out an apartment in Israel that exceeds the tax-exempt threshold
- Distributions from trusts
- Income from self-employment for which advance payments were not properly paid
- Reserve duty payments received from the National Insurance Institute in addition to salaried employment
- Any other taxable income for which tax was not paid
If you had any of these incomes, we recommend that you reply to this email so that we can perform a tax assessment.
- If the payment is made by the end of January, there will be no interest at all.
- If the payment is made by the end of February or March, there will be a very low interest rate of less than 1%.
- If the payment is made after March, it will accrue regular interest and indexation charges of 4% + annual index.
We recommend making the advance payment as soon as possible.
At this stage of the year, the tax data for 2024 is usually not yet available, so you can wait until February or make a general estimate based on estimated data. The choice is yours. Alternatively, if there was no significant change from 2023, you can pay advance payments that are identical to the previous year.
Please feel free to send us an email to orel@hb-cpa.co.il with the necessary materials for calculating the advance payment. If you have any questions or clarifications, please feel free to call me at 054-3100998.
We are always at your service.
Hai Bahalul and all the team