Most employees are unaware that they are entitled to tax refunds, which can add up to large sums.
The State Comptroller stated in a report about two months ago that two million employees are entitled to tax refunds of NIS 3.6 billion, which means that you should also check whether you are entitled to receive tax refunds. Many employees can receive a high amount, as four out of five employees are entitled to tax refunds In practice, on the other hand, several tens of thousands of employees are filed each year.
Tax: On conducted an in-depth study among 4,000 of its customers on tax refunds during 2020. The company has over 30,000 customers, so the sample reflects their distribution in terms of population groups and in terms of gender, age and geography.
The data show that during 2020, due to the outbreak of the corona crisis and the expulsion of hundreds of thousands of workers to the IDF, there were a number of significant changes, including a 15% increase in the average return to a foster home of NIS 4,300 per year.
The reason is that the sickness benefit is lower than the salaries and therefore there is a gap between what the employee paid as tax and what he actually needs.
What can I get tax refunds for?
One of the reasons for getting tax refunds is a change in the workplace.
81% of the people who changed jobs during the year received a tax refund in the average amount of NIS 2,943.
Another reason is maternity leave.
The data show that 74% of the women who gave birth and were on maternity leave for more than 16 weeks were entitled to a refund of an average of NIS 3,538 for that year.
Another reason for the refund is donations.
100% of the people who donate and pay taxes have received a refund.
Another factor in the refund is the non-registration of alimony points for alimony.
63% of divorcees have not updated a credit point for alimony and therefore the tax refund for each year that such a credit point has not been updated is NIS 2,616.
Pay slip, illustration, Photo: Ami Shumen
Due to unemployment - expenditure on sickness: 93% of those who go on sickness or unemployment and who earned more than NIS 12,000 received a tax refund of NIS 4,021 for that year.
Other reasons for tax refunds are: Reimbursement for life insurance payments, life insurance on a mortgage, repayment of a qualifying home, reimbursement for losses in securities, non-registration of credit points for men for childbirth and distribution of tax refunds by geographical location.
- 94% of the people who deposited for personal life insurance or for taking out a mortgage were entitled to a tax refund.
In an examination of every million shekels for a 25-year mortgage, the cumulative tax refund for the period is over NIS 20,000 for the entire mortgage period.
100% of those who move to a qualifying locality have received a tax refund for the year of transition, since approval for residency in a qualifying locality is given only after 12 months from the date the resident becomes a qualifying resident and thus in fact the first year full tax is paid.
79% of clients holding securities were entitled to a refund of the said years tax.
However, those who hold securities are important to check every year as losses are not rolled over from year to year but only through filing a report.
56% of men who have had a child do not record credit points in the year of birth on the pay slip.
The repayment rate can reach tens of thousands of shekels over 6 years.
This is a phenomenon that exists mainly in the Arab sector.
Tax: on CEO Tal Carmon: "The corona crisis has made the employee public in Israel much more active. They are interested, checking and demanding what they deserve in income tax refunds. It turns out that sitting at home, in the Knesset or after dismissal, of hundreds of thousands "Israelis for many months have caused many employees to examine in depth what they deserve from the state. It is important to know that today all procedures for obtaining tax refunds can be carried out digitally, easily and simply, without the bureaucracy that has deterred many in the past."
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