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Retirement and Provident fund Tax Department

Retirement and Provident fund Tax Department

Deutsch & co are pleased to announce the opening of the Retirement and Provident fund Tax Department in Efrat office.

Taxation of retirement and pension grants are one of the most complex issues in the field of taxation in Israel. As of 1.1.2012, a series of complex and far-reaching reforms have been instituted in the field, which have made it even more complicated and challenging than it has been in the past. When it comes to U.S. retired citizens, who must also report their income tax to the U.S. authorities, the issue becomes even more complex, because it requires knowledge of both tax worlds to perform optimal planning.

For this reason, we are pleased to update you on the opening of a new department in our office – the Retirement (pension) and Provident Tax Department. This Department will be headed by CPA Hai Bahalul.

CPA Hai Bahlul Hai has worked at the Tax Authority. He has a M.B.A specializing in finance and a B.A in accounting with honors from the Hebrew University. He is a lecturer in accounting courses at several colleges in Israel. He has experience in American and Israeli taxation. Graduate of an advanced retirement course for representatives.

The department has a staff that includes Israeli and American accountants who are prepared to assist you in making correct tax plans in all that’s related to retirement taxation, taking into account both Israeli and American taxation aspects.

From our experience, counseling in this area often results in tax savings of tens of thousands of NIS a year!

What are the services that this department provides?

  • Advice regarding the taxation of retirement grants, including exemption from severance pay, spreading of severance pay, filling out the 161A forms after retirement and, if needed, representing before the authorities.
  • Advice regarding the performance of fixation of rights after reaching retirement age and receiving pension. Submission of Forms 161D (בקשה לקיבוע זכויות) and approval for Tax exemptions from the tax authority.
  • Execution of “Artificial retirement” (“Prisha Meduma” פרישה מדומה/מלאכותית) – receiving a tax-exempt pension while continuing to work by preserving tax-exempt on future retirement (tax planning starting from the age of 62).
  • Recognized allowance (“Kitzba Mokeret” קצבה מוכרת) calculations – additional tax-exempt on pension for high-income earners.
  • Accompanying retirees from the security forces (IDF, police, IPS, etc.) in all that is related to the special exemptions granted to them according to the Israeli law (security forces grant, bridging pension and tax-exempt capitalization).
  • Deposit to a provident fund in accordance with Amendment 190, including the IRA – implementation of significant tax benefits in Israeli law, which are mainly relevant to people approaching the age of 60 and above.
  • Pension counseling and financial planning regarding pensions from Israel and abroad (IRA,401k etc) in collaboration with a pension advisor and a licensed financial planner.

The retirement department is set to give you service with patience, a smile, and professionalism.

To set up an appointment or to get more info please call 02-9992104 ext 643 or send email to [email protected].

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