Tax Terms Cheat Sheet

Key Israeli tax terminology for understanding your tax obligations, credits, and filings.

נקודות זיכוי

Nekudot Zikui

Tax credit points that reduce your income tax. Each point is worth a fixed NIS amount per month.

Literal: "Credit Points"

דוח שנתי

Doch Shenati

The annual tax return filed with Mas Hachnasa (Israel Tax Authority).

Literal: "Annual Report"

תיאום מס

Teum Mas

A tax coordination form needed when earning income from multiple employers to avoid overpaying tax.

Literal: "Tax Coordination"

ניכוי במקור

Nikui BaMakor

Withholding tax deducted at the source of payment, such as by your employer or bank.

Literal: "Deduction at Source"

מס שבח

Mas Shevach

Capital gains tax on the sale of real estate, calculated on the profit from the sale.

Literal: "Appreciation Tax"

מס רכישה

Mas Rechisha

A progressive tax paid when purchasing real estate in Israel. Olim receive significant discounts.

Literal: "Purchase Tax"

מע"מ

Ma'am (VAT)

Value Added Tax at 18%, included in most prices. Self-employed must charge and remit it.

Literal: "Value Added Tax"

עוסק פטור

Osek Patur

A self-employed individual below the VAT threshold (~₪120,000/year) who is exempt from charging VAT.

Literal: "Exempt Dealer"

עוסק מורשה

Osek Murshe

A registered self-employed person or business that must charge and remit VAT on all sales.

Literal: "Licensed Dealer"

עוסק זעיר

Osek Zair

A micro-business category with simplified VAT reporting requirements introduced to reduce bureaucracy.

Literal: "Small Dealer"

השבת מס

Hashavat Mas

A tax refund from the Israel Tax Authority when you have overpaid during the year through withholding.

Literal: "Tax Refund"

מס הכנסה

Mas Hachnasa

Israeli progressive income tax on all earnings. Rates range from 10% to 50% across seven brackets.

Literal: "Income Tax"