The "small business" reform is intended to simplify the process of doing business in Israel. Small businesses will be entitled to deduct from its income a normative expenditure rate of 30% of turnover.
In most cases, this recognition will save those businesses from having to file an annual report and demand recognition of expenses. The calculation of tax rates, tax benefits, credit points, etc. will be based on the current tax coordination system, through which the tax deduction for employees with additional income is calculated.