Make an income tax coordination online

Who can do a tax coordination online

• Employees- who receive wages from more than one employer
• Employees who request relief in calculating tax
• Small business owners

Who cannot do a tax coordination online

1. Those who have reached the age of eligibility and have not made a fixation of rights
2. Those with 9 or more sources of income
3. Those who have made an early withdrawal from a provident fund due to medical expenses
4. Those who live on a kibbutz

• In these cases, you should contact the tax assessor's office associated with your place of residence
• You should schedule an appointment in advance in the appointment scheduling system

What to prepare before doing a tax coordination

• Deduction file numbers of the employers or payers
• Preferably: a payslip from each employer or payer, so that the data is available (such as the gross monthly salary and lump sum payments twice)
• Documents supporting the request for tax deduction relief.
• For further reading: Income tax guide for applications for tax reliefs and tax coordination 

How to conduct a tax reconciliation online

• Logging into the system requires registration and identification in the personal area of the Tax Authority
• If the tax reconciliation process is not completed, the system will save a draft of the data entered by you, and upon re-login it will allow you to continue from where you left off, or start over

Here are the options for tax reconciliation:

Tax reconciliation on salary or pension or other income

• After logging into the system, you will be able to report your income from salary, pension and other income, including income from a small business
• The system will calculate the amount of your expected annual income and issue the certificates accordingly. The certificates must be given to employers or payers

Tax reconciliation on income from a small business

• It is important to perform a tax coordination by the end of the tax year. Tax coordination allows you to determine the amount of tax requested to be paid on the profits you have accumulated this year
• You can pay the tax at your choice during the current year
• If no tax reconciliation is conducted and a summary report is not submitted at the end of the year:
  • The classification of the file as a small business will be canceled - and the file will be reclassified as an exempt or licensed dealer for the current year and at least two additional years
  • You will be required to submit an annual report, a capital declaration, advances and additional obligations

Requesting relief in tax deductions

• You can request relief in calculating the tax in the following cases:
• Credit points for children
• New immigrants
• Residents of a locality that qualifies for a tax discount
• Children with disabilities
• Eligibility for an academic degree or vocational studies
• Donation to a public institution
• Retired soldiers
• National service graduates
• Single-parent family

Update or correction of an existing tax coordination

• If you have already prepared a tax coordination for the current tax year, you can update the coordination in the tax coordination system
• Enter the details of the requested change and, if necessary, upload supporting documents for the request

Authorizing a representative to prepare the tax coordination

In the tax coordination system, you can authorize a representative to prepare the tax reconciliation, in accordance with the rules.

Tax coordination extension

• If you received a letter extending the validity of a tax reconciliation from a certain tax year, there is no need to prepare a new tax coordination for the tax year that follows it
• The letter is on the letters page in the personal area of the Tax Authority

Receiving tax coordination approvals

• Some approvals are issued immediately, and immediately after creating the request, the tax coordination will be automatically generated and appear in the personal area
• In other cases, the reconciliation will be reviewed by the ministry and, when approved, it will be received after a few business days and can be downloaded from your personal area
• The system will notify you with an Email or SMS notification of the completion of the process in these cases, and send a link to view and download the certificates
• After that, each time you log into the system, the certificates issued in the last tax coordination you conducted this year will be displayed

The service is free of charge

Terms and explanations

• The eligibility age is the retirement age, or the age at which you started receiving an annuity or an allowance (whichever is later).

• Amendment 190 to the Income Tax Ordinance established a new calculation method regarding annuity or allowance exemption and it applies to those who have reached the age of eligibility in the tax year 2012 onwards, unless the transitional provisions apply to them and they choose the calculation method that existed before the amendment.

• Fixation of rights: Those who have reached the age of eligibility starting in 2012, will be able to contact the Assessing Officer for the purpose of determining their entitlement to an exemption regarding the annuity or the allowance. This process will be carried out at the Assessing Officer's office, where the percentage of the exemption for the annuity or the allowance will be determined.

• It is not possible to make a tax adjustment online if you are at the eligibility age, but have not performed this action with the Assessing Officer.
• Those who have performed "fixation of rights" will be able on the following year to perform the tax adjustment online and receive the exemption determined for them in the "fixation of rights", without having to arrive at the income tax offices.