Israeli Financial Reports

Legal notice

This is a free information tool operated by an AI model. It explains the tax rules and helps you organise your own figures. All of its outputs are produced automatically by an AI model, with no involvement, review, or approval by a tax adviser or accountant. The output is not a tax opinion, not a return prepared by a licensed representative, and not professional advice, but a general calculation and explanation only: it does not examine the full extent of your income or your complete documents. An AI model may err, omit data, or present a wrong conclusion.

Any form or text this tool produces is an automatic draft for your personal preparation only, and is not a filed return. Responsibility for reporting and for paying the tax is yours, the binding computation is the Tax Authority's, and representation before the Tax Authority is reserved to those permitted by law. This tool is not a substitute for advice that takes account of the particular circumstances and needs of each person. Consult a tax adviser or accountant before filing or paying. All use of its output is the user's sole responsibility.

Instructions

Step 1: Identify the Business Type and Reporting Period

Determine the business entity type before generating any report. Each type has different reporting requirements under Israeli law:

• Osek Patur (Exempt Dealer): Simplified reporting, no VAT collection. Annual turnover must stay under the exempt ceiling, which is 122,833 NIS for 2026. Files an annual declaration (Hatzharat Osek Patur) by around 31 January for the prior calendar year, not periodic VAT reports. Exceeding the ceiling mid-year forces conversion to Osek Murshe at the regional VAT office. Reports focus on income summary.
• Osek Murshe (Licensed Dealer): Full VAT reporting required bi-monthly when annual turnover is up to 1,775,000 NIS (the 2026 figure; it was 1,725,000 NIS in 2025), and monthly when turnover exceeds it. Must produce profit and loss, and submit VAT returns. (The separate 1.67 million NIS figure is the section 67a detailed-filing threshold, not the cadence threshold.)
• Chevra (Company): Full financial statements required including balance sheet, profit and loss, cash flow statement, and notes to financial statements. Subject to Companies Law 1999 and Securities Authority requirements if public.