How much of each invoice to set aside
The money that lands in your account is not your profit. Part of it is VAT you collected for the state, and part will go to income tax and National Insurance later in the year. This returns one percentage to hold back every time someone pays you.
What actually gets paid during the year is in the income tax advances calculator.
An osek patur does not charge VAT and cannot reclaim input VAT, so the set-aside covers income tax and National Insurance only.
Turnover, not profit. If income swings month to month, enter an average: tax is settled on the whole year.
Expenses cut your profit, and with it both income tax and National Insurance.
Only an expense with a tax invoice allows a VAT offset. Salaries, insurance, government fees and payments to an osek patur do not belong here.
Each point takes ₪2,904 off the annual tax. The default is the base for a man (2.75 for a woman).
Enter a monthly income above zero.
What to set aside
Out of every ₪1,000 a client pays you, - is not yours.
The monthly breakdown
| Lands in your account VAT included | - |
| VAT payable output VAT less input VAT | - |
| Income tax | - |
| National Insurance and health tax | - |
| Business expenses | - |
| Left for you each month | - |
On the figures entered, expenses exceed income, so there is no income tax and no National Insurance to calculate.
Below a monthly income of ₪3,134, National Insurance is still charged as if you had earned that much, for as long as the file is open. The calculator does not add that minimum, so at low profit the real payment will be higher than shown.
This calculator is an estimate and not tax advice. Income tax is collected during the year as advances set as a percentage of turnover, and the gap against the real tax is settled in the annual return, so the figure here is what the year costs rather than what leaves the account each month. Pension and study fund deposits cut the tax and are not part of the calculation.
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