Israel Tax Authority Reliefs in Light of Coronavirus Pandemic

The Israel Tax Authority has published several reliefs for taxpayers. This move is part of preparations to fight the coronavirus and to assist taxpayers dealing with the economic consequences of the pandemic. 

Updated Reporting and Payment Deadlines for VAT for the Months of January and February 2020

The reporting and payment deadlines for VAT for the months of January and February 2020 have been extended, as follows:

• For dealers reporting VAT on a bi-monthly basis, the deadline for reporting and payment has been extended. The new deadline is April 27, 2020.
• For dealers reporting VAT on a monthly basis, the deadline for reporting and payment has been extended. The new deadline is March 26, 2020.

Extending the Validity of Withholding Tax Certificates

Withholding tax certificates set to expire on March 31, 2020, have been extended to April 30, 2020.

Taxpayers who do not have withholding tax certificates may apply to the tax assessor through the public inquiries system or, for representatives related to the Israel Tax Authority’s online portal (SHA’AM), through the offices inquiries system.

Extending the Validity of Tax Coordination Certificates from 2019

A blanket extension has been granted for tax coordination certificates that expired at the end of 2019, until the date of salary payments for the month of May 2020 and no later than June 13, 2020.

Taxpayers who must conduct a new tax coordination or update an existing one may do so through the application for tax coordination on the Israel Tax Authority website or by application to the assessor’s office for tax coordination through the public inquiries system.

Postponing the First Quarter Online Reporting Deadline for Financial Services Providers

The new deadline for financial service providers to submit online reports for the first quarter of 2020 is May 10. 

Extending 2018 Tax Return Filing Deadline

The deadline for submitting 2018 tax returns, for which representatives were granted an extension until March 31, 2020 (per the Arrangement to Grant Representatives Extensions), shall be automatically postponed to April 30, 2020.

Postponed Deadlines for Submitting 2019 Tax Returns

• The deadline for submitting 2019 tax returns for individuals not required to submit an online return has been postponed until June 30, 2020.
• The deadline for submitting 2019 tax returns for individuals required to submit an online return has been postponed until July 30, 2020.
• Also the deadline for submitting 2019 tax returns for corporations has been postponed until July 30, 2020.

Israel Tax Authority Closes Its Offices to the Public

The Income Tax, Real Estate Tax, and VAT Offices will not be open for public visits. However, the Israel Tax Authority will continue to provide services over the phone and via other digital means.

Affidavits for real estate transactions requiring an attorney’s signature verification shall be accepted at the Real Estate Tax Office. This is possible even if the verifications were not done in person, but through video conference, as long as this issue was expressly detailed in a cover letter. 

Note that at this stage there is no policy change regarding the deadlines for submitting reports on deductions and advance payments as well as for payment of income tax.