If your annual income exceeds 649,000 ILS, you would have noticed that your Form 106 states you must submit an annual report to the tax authority. This is not a mistake. Contrary to popular belief, certain salaried employees are required to file annual reports with the tax authorities, even though their employer withholds tax from their salary. In this case, the rule is that employees with an annual salary above 649,000 ILS are obligated to submit a report on all their incomes.

It's also important to note that above this amount, an additional tax of 3% is applied to the amount exceeding this threshold, calculated on your income after all deductions and allowances.

Our office assists high-income salaried employees, including those with options, in preparing and submitting these reports online to the tax authorities. We ensure that your submissions are accurate and meet the requirements of the tax authority, and we explore the possibility of offsetting personal capital losses against taxable capital gains.