israeli-tax-withholding — Автоматизированный расчет удержания израильских налогов

--- name: israeli-tax-withholding description: Israeli tax withholding (nikui mas bemakor) rates, certificates, and calculations. Use when user asks about withholding tax, "nikui mas", withholding certificates, "ishur nikui", tax coordination (tium mas), or needs to calculate withholding amounts. Covers payments to suppliers, freelancers, landlords, and cross-border payments. Do NOT use for employee payroll tax (see israeli-payroll-calculator) or VAT reporting. license: MIT compatibility: Network access helpful for SHAAM certificate lookup. --- # Israeli Tax Withholding ## Instructions ### Step 1: Identify Payment Type and Default Rate | Payment Type | Hebrew | Default Rate | Section | |-------------|--------|-------------|---------| | Services (individuals) | shlumim | 20% | 164 | | Services (companies) | shlumim | 20-30% | 164 | | Rent (business property) | schirut | 35% | 170 | | Royalties | tamlugim | 23% | 170 | | Interest | ribit | 25% | 164 | | Dividends | dividendim | 25-30% | 164 | | Payments to non-residents | tishlumin lechul | 25% | 170 | ### Step 2: Check for Withholding Certificate A valid withholding certificate (ishur nikui mas bemakor) may reduce or eliminate the withholding: - Certificate shows: Business name, TIN, approved rate, validity period - **Verify:** Certificate year matches current tax year - **Verify:** Certificate is from Tax Authority (not a fake) - **SHAAM lookup:** Can verify certificate status via SHAAM portal/API ### Step 3: Calculate Withholding ``` Payment amount (before VAT): X NIS Withholding rate: Y% (from certificate, or default) Withholding amount: X * Y% Net payment to payee: X - withholding VAT (if applicable): Calculated separately on full amount ``` ### Step 4: Reporting and Payment - Withholding must be reported and paid to Tax Authority monthly - Form 856: Monthly withholding report - Form 856A: Annual summary of all withholdings - Deadline: 15th of following month ### Step 5: Certificate Types | Certificate | Hebrew | Purpose | |------------|--------|---------| | Ishur Nikui Mas BeMakor | ishur nikui mas bemakor | Reduced/zero withholding on payments | | Ishur Tium Mas | ishur tium mas | Tax coordination for multiple employers | | Ishur Nikui Mas Rechisha | ishur nikui mas rechisha | Real estate purchase tax withholding | ### Step 6: How to Obtain a Certificate 1. Apply via SHAAM portal (contact Tax Authority for current portal access) 2. Provide: TIN, financial statements, tax returns 3. Processing time: 2-4 weeks 4. Certificate valid for current tax year (January-December) 5. Renewal required annually ## Examples ### Example 1: Payment to Freelancer User says: "I need to pay a freelancer 10,000 NIS for consulting" Result: Default 20% withholding = 2,000 NIS withheld, 8,000 NIS net payment + 1,800 NIS VAT (if osek morsheh). Recommend asking freelancer for their withholding certificate. ### Example 2: Certificate Check User says: "A vendor gave me a 0% withholding certificate, is it valid?" Result: Verify certificate year, check SHAAM, confirm vendor TIN matches certificate. ### Example 3: Cross-border Payment User says: "I need to pay a US company for software licenses" Result: Default 25% withholding on payments to non-residents. Check if tax treaty applies (US-Israel treaty may reduce to 10-15%). Recommend consulting tax advisor for treaty benefits. ## Bundled Resources ### Scripts - `scripts/calculate_withholding.py` — Calculates Israeli tax withholding (nikui mas bemakor) amounts for various payment types (services, rent, royalties, dividends, non-resident payments). Supports certificate-based reduced rates and outputs net payment plus VAT breakdown. Run: `python scripts/calculate_withholding.py --help` ### References - `references/withholding-rates.md` — Complete default withholding rates by payment type under Section 164 (income payments) and Section 170 (special payments), including rates for individuals, companies, major shareholders, and non-residents. Consult when determining the correct default rate for a payment. - `references/certificate-guide.md` — Guide to Israeli withholding certificates: types (Ishur Nikui Mas BeMakor, Ishur Tium Mas), application process, validity periods, and verification procedures via SHAAM. Consult when a vendor presents a withholding certificate or when guiding users through the certificate application process. ## Gotchas - Israeli withholding tax (nikui mas bemakor) rates are set by the Tax Authority per business, not as a flat rate. A new freelancer may have a 30-47% default rate, while an established one may have 0% with a ptor (exemption certificate). Agents may use a single hardcoded rate. - Withholding tax exemption certificates (ishur ptor nikui mas bemakor) expire annually and must be renewed. Agents may reference a ptor without checking its validity period. - When paying a foreign contractor, Israel requires withholding tax unless a tax treaty provides a reduced rate. Agents may apply domestic rates to international payments or skip withholding entirely. - The withholding tax on rent payments to individuals is 35% by default. Agents may use the lower corporate rate or the zero rate that only applies when the landlord has a valid ptor certificate. ## Troubleshooting ### Error: "Certificate expired" Cause: Withholding certificates are annual, expire December 31 Solution: Ask vendor for renewed certificate for current tax year. ### Error: "Wrong withholding rate applied" Cause: Using default rate when certificate exists, or vice versa Solution: Always request certificate before first payment. Apply certificate rate only during its validity period. ### Error: "Late reporting penalty" Cause: Withholding report (Form 856) not filed by the 15th Solution: File immediately. Penalties apply for late reporting and late payment of withheld amounts.