In honor of: our clientele

Greetings,

We hope you are feeling well in these complex days, the office staff is working in a reduced format due to the war, but it should be noted that there is nothing to worry about because the tax authority granted extensions for the submission of annual reports and capital statements for 2022 due to the situation.

For any further information please call:

02-9992104 extension 656 or [email protected]

 

 Below is the announcement of the Tax Authority on business relief due to the “חרבות ברזל” war:

The periodic reporting dates for the month of September 2023 for VAT, deductions, and income tax advances will be postponed to 26.10.23

and fines for late submission of the report will not be imposed for reports submitted until 23.10.23.

Although ,Charges for interest and linkage differences will apply until the actual payment date. In exceptional cases, it will be possible to submit an individual request to waive the interest and linkage differences along with supporting documents for the request.

Recruited reservists, and  residents of the south and Gaza Strip who did not submit the aforementioned reports for the month of September 2023 on time, will be able to receive a full cancellation of linkage differential fines and interest.

The treatment will be carried out through an individual application through the online communication channels.

2. Deadlines for submitting annual reports and capital statements for 2022 according to the deadline for representatives (clients represented by a CPA)

The updated deadlines for submitting annual reports for 2022:

Companies – the first submission date set for 31.10.23 will be postponed to 30.11.23

Individuals – the second submission date set for 30.11.23 will be postponed to 31.12.23

Capital declarations – Capital declarations whose submission deadline is set for 1.9.23 and later, the deadline for submission will be extended until 31.12.23, or until the date of submitting the reports for 2022 in accordance with the arrangement of lengths for representatives, whichever is later.

3. Withholding tax approval – withholding tax approvals that expired on September 30, 2023 will be extended until November 30, 2023.

Taxpayers who do not have a certificate of withholding tax, may contact the assessment office through the public inquiries system (MPL) or through the office inquiries system (for representatives connected to the H.E.M.). These inquiries will be given priority as much as possible.

A link to the Mapal system – https://www.gov.il/apps/taxes/taxes/#/mapal/he?utm_source=go.gov.il&utm_medium=referral 4.Freezing of collection and enforcement procedures – no new foreclosures will be imposed in respect of debts, nor will enforcement procedures and foreclosures be carried out until 20.10.23. As

It will be emphasized that the linkage and interest differences will be applied according to law and it is not about canceling existing foreclosures or writing off debts, but only about stopping the said procedures.

Inquiries on the subject will be answered within the framework of the online services:

1. System of representative inquiries
2. MPL system (see link on page no. 1.)
3. Submitting longs for obtaining and appeals, submitting documents and managing assessment procedures in all tax systems-

During the next two weeks, the Tax Authority will show sensitivity and flexibility regarding the management of existing procedures and the opening of new procedures .An orderly directive to the offices was issued on this matter by a senior vice president for assessment and audit on October 8, 2023

6. Special response to reservists who were recruited – dedicated channels of inquiries were opened in MPL, and for representatives who were recruited in the system of representative inquiries in all subjects: income tax, VAT, real estate taxation in all subjects. This channel is designed to ensure an accessible channel for quick handling of inquiries.
7. Prioritization of applications from the residents of the south and the Gaza Strip – as part of the Tax Authority’s assistance to the residents of the Gaza Strip and the South, priority will be given to applications submitted by them through the online channels in all the arrays (representative system and requests from P.L.).
8. Reporting retirement from work within the framework of the “new” form 161 – the obligation to notify retirement from work using the new form 161 will be postponed until 1.1.24.

Updates on social security

1. The date of reporting to the National Insurance – there is no postponement of the date of reporting to the National Insurance, as of October 15, 2023, for the month of September, even though it was announced that no fines will be given to those who are late in reporting
2. Redundancy – the rule is that redundancies must be agreed upon by the employee and the employer together, if there is no agreement and the employer decides on forced redundancies, he may be sued and the court can see this as dismissal without a hearing (unlawful dismissal).

If the application is agreed upon by both parties – we are still waiting for clarifications from the government ministries and National Insurance, currently there is no compensation.

As of today, with the exception of a range of up to 7 kilometers from the border of the Gaza Strip, work continues in a normal format according to the law, when it comes to one of two parents of a child up to the age of 14, the parent can stay with his child at home, but there is still no legislation regarding the payment to this parent. History shows that in retrospect, legislation is enacted to reward these workers.)

Therefore, it is suggested that you as employers examine the possibility as far as possible of allowing employees to work from home, again, only if possible

It is not clear at the moment if the employee will be entitled to wages and in which areas.

An employee can be taken on a 7-day vacation immediately, but it is necessary to make sure that the employee has 7 days of vacation, otherwise the employer will be required to pay the excess payment

To sum up: beware of work that is not with the consent of the employee, and the recommendation is that as long as the business is active, employees should be allowed to work as much as possible, we are still waiting for an emergency decision from the government on the matter.

3. Compensation of reservists:

Self-employed – the state knows what the insured amount is according to the National Insurance registration.

Employees – the state has the information according to forms 102 that are broadcast every month.

4. The guidelines of the National Cyber Authority – due to the guidelines of the National Cyber Authority, anyone who reports through a cloud that is not in Israel, the possibility of reporting has been cut off, there are parties in contact with National Insurance on this issue,

Files must be generated in the cloud, copied to a computer drive and from there transmitted to the National Insurance, this takes a long time, but unfortunately there is no choice in these times.

Answers on labor law issues

• Essential workers – electricity\water\gas\food\food plants, the workers must come, and from the date of 7/10 there is an emergency law for essential services, a worker who does not come after the order may not be entitled to wages if he does not come and be exposed to criminal aspects.

• It is forbidden to fire an employee called to the reserve and also 30 days later there is a prohibition.

The payment to the employee in Order 8 is the responsibility of the Tax Authority

• Employees who have children under the age of 14 or employees who have children with disabilities up to the age of 21 can stay at home and take care of the children in accordance with the instructions of the Home Front Command and are entitled to receive payment.

One of the parents stays at home with the child and the other works

• The law does not stipulate payment of wages if the employee chooses not to come on his own accord.

• Reducing a position – the employer cannot reduce the position, because he cannot do so, the recommendation is to pay as usual in order to avoid special cases that will be discussed by the court in retrospect on the question of why he acted this way.

• Shift workers / freelancers – the refunds are not yet known how they will be calculated, the tax authority is the one who will calculate things retrospectively. The payments will be regular and the employer will calculate with the tax authority.

• If there are no vacation days – it is forbidden to enter a negative balance, the days of absence must be paid at the expense of the employer.

For any further information please call:

02-9992104 extension 656 or [email protected]