Who is required to submit an online report?

Every individual who is required to file an annual tax report for income derived through business or employment must do so by submitting an online annual report, unless otherwise exempted by law.

On June 16, 2010, the Knesset Financial committee ratified income tax regulations exempting individuals from filing the annual online tax report for certain levels of taxable income.

An individual, whose total income, from business or employment, whether occupation or farming is not in excess of 80,520 NIS for the taxable year ending in 2015, is exempt from filing an online annual report for 2015.

A married couple with a combined total taxable income not in excess of 161,030 NIS is exempt from filing an online annual tax report for 2015 provided that the taxable income from either spouse is not in excess of 80,520 NIS.

Additionally, an individual reaching retirement age (or in the case of a married couple in which both the taxpayer and spouse have both reached retirement age), is exempt from filing an online annual tax report for 2015.

These exemptions do not apply when either, the taxpayer or the taxpayer’s spouse exerts a controlling interest in a corporation as defined by income tax regulation. Additionally, these exemptions do not apply to any taxpayer who has submitted a claim for an income tax reduction.

It should be emphasized that the aforesaid exemption is related only to the requirement regarding submission of an online report. It does not exempt the taxpayer from the obligation to submit an annual report in accordance with income tax regulations.