{"id":568,"date":"2025-06-16T16:03:42","date_gmt":"2025-06-16T14:03:42","guid":{"rendered":"https:\/\/amuc.co.il\/?page_id=568"},"modified":"2025-06-17T15:09:59","modified_gmt":"2025-06-17T13:09:59","slug":"asset-declaration","status":"publish","type":"page","link":"https:\/\/amuc.co.il\/en\/asset-declaration\/","title":{"rendered":"Asset Declaration for Tax Authority"},"content":{"rendered":"
\n
\n

What Is a Capital Declaration?<\/em><\/strong><\/h4>\n\n\n\n

To prevent tax evasion, the Israeli Tax Authority uses capital declarations as one of its primary tools to identify discrepancies between reported income and actual financial growth.<\/p>\n\n\n\n

A capital declaration is a formal report submitted by a taxpayer detailing all assets and liabilities as of a specific date.<\/p>\n\n\n\n

It enables the Tax Authority to evaluate whether the taxpayer\u2019s reported income and tax payments over time reasonably explain any increase in wealth.<\/p>\n\n\n\n

Who Is Required to Submit a Capital Declaration?<\/em><\/strong><\/h4>\n\n\n\n
    \n
  1. Self-employed individuals (Osek Patur or Osek Murshe)<\/li>\n\n\n\n
  2. Business owners and company shareholders<\/li>\n\n\n\n
  3. Salaried employees with high income<\/li>\n<\/ol>\n\n\n\n

    Anyone explicitly required to do so by the Tax Authority.<\/p>\n\n\n\n

    Typically, a first capital declaration is requested shortly after opening a business.\nUnder newer regulations, those classified as Osek Zair (micro-businesses) may be exempt from this requirement at business launch.<\/p>\n\n\n\n

    How Does the Tax Authority Use It?\nThe Tax Authority compares two declarations submitted several years apart (usually 5 years).\nIt then examines whether any growth in assets over that period aligns with reported income and reasonable living expenses.<\/p>\n\n\n\n

    Example<\/em><\/strong><\/h4>\n\n\n\n

    Israel opened a business in 2015 and submitted a first declaration showing NIS 1,000,000 in assets.<\/p>\n\n\n\n

    He earned NIS 200,000 per year for the next 5 years.<\/p>\n\n\n\n

    In 2021, he submitted a second declaration showing assets of NIS 1,500,000.<\/p>\n\n\n\n

    The Tax Authority checks whether this NIS 500,000 increase is consistent with average living costs (according to official \u201cstandard of living\u201d tables).<\/p>\n\n\n\n

    If not, they may demand additional tax for unreported income.<\/p>\n<\/div>\n<\/div>\n\n\n\n

    \n
    \n

    What\u2019s Included in a Capital Declaration?<\/em><\/strong><\/h4>\n\n\n\n

    The declaration includes the full financial status of the taxpayer and their immediate family (spouse and children under 18), reported as of a specific date\u2014usually December 31.\n\nIt consists of two main parts:\n\n1. Private Assets and Liabilities\n\n2. Business or Company Assets and Liabilities<\/p>\n\n\n\n

    Assets May Include:<\/p>\n\n\n\n

    Real Estate: Apartments, land, lots<\/p>\n\n\n\n

    Vehicles: Cars, motorcycles, any motorized vehicle<\/p>\n\n\n\n

    Bank Accounts: Current accounts, savings, deposits<\/p>\n\n\n\n

    Securities: Stocks, bonds, mutual funds, investment portfolios<\/p>\n\n\n\n

    Insurance & Savings: Life insurance, pension plans, foreign currency accounts<\/p>\n\n\n\n

    Valuables: Home contents, jewelry, collectibles, gold<\/p>\n\n\n\n

    Liabilities May Include:<\/p>\n\n\n\n

    Mortgages and Loans: From banks, private lenders, non-bank institutions<\/p>\n\n\n\n

    Personal Guarantees<\/p>\n\n\n\n

    Credit Cards and Future Payments<\/p>\n\n\n\n

    Why Timely and Accurate Submission Matters<\/em><\/strong><\/h4>\n\n\n\n

    Taxpayers are usually given 120 days to submit the capital declaration after receiving an official request.<\/p>\n\n\n\n

    If needed, deadline extensions can be requested\u2014especially in cases where documentation is difficult to obtain.\n\nFailure to submit on time may result in a monthly fine of NIS 380 and may disrupt ongoing business activities. For example, the Tax Authority might refuse to renew your withholding tax exemption, making business transactions more complex.<\/p>\n\n\n\n

    Submitting incorrect or incomplete information\u2014or failing to submit at all\u2014can constitute a criminal offense.<\/p>\n\n\n\n

    Service Cost<\/em><\/strong><\/h4>\n\n\n\n

    The cost of preparing and submitting a capital declaration depends on its complexity.\nFees typically range from \u20aa700 to \u20aa2,000.<\/p>\n\n\n\n

    Preparing a capital declaration involves strict reporting standards and technical documentation. Accurate asset valuation and correct annex preparation are essential\u2014and require professional care.\n\nI invite you to contact me for a personal consultation and quote tailored to your specific case.<\/p>\n<\/div>\n<\/div>\n\n\n\n

    <\/p>","protected":false},"excerpt":{"rendered":"

    \u05de\u05d4\u05d9 \u05d4\u05e6\u05d4\u05e8\u05ea \u05d4\u05d5\u05df? \u05d1\u05de\u05d8\u05e8\u05d4 \u05dc\u05de\u05e0\u05d5\u05e2 \u05d4\u05e2\u05dc\u05de\u05d5\u05ea \u05de\u05e1, \u05e8\u05e9\u05d5\u05ea \u05d4\u05de\u05d9\u05e1\u05d9\u05dd \u05de\u05e0\u05e1\u05d4 \u05dc\u05d0\u05ea\u05e8 \u05e4\u05e2\u05e8\u05d9\u05dd \u05d1\u05d9\u05df \u05d4\u05d4\u05db\u05e0\u05e1\u05d5\u05ea \u05d4\u05de\u05d3\u05d5\u05d5\u05d7\u05d5\u05ea \u05dc\u05d4\u05db\u05e0\u05e1\u05d5\u05ea \u05d1\u05e4\u05d5\u05e2\u05dc. \u05d4\u05e6\u05d4\u05e8\u05ea \u05d4\u05d5\u05df \u05d4\u05d9\u05d0 \u05d0\u05d7\u05d3 \u05d4\u05db\u05dc\u05d9\u05dd \u05d4\u05e2\u05d9\u05e7\u05e8\u05d9\u05d9\u05dd \u05d4\u05de\u05e9\u05de\u05e9\u05d9\u05dd \u05d0\u05ea\u00a0\u05e4\u05e7\u05d9\u05d3 \u05d4\u05e9\u05d5\u05de\u05d4\u00a0\u05d1\u05d1\u05d5\u05d0\u05d5 \u05dc\u05d1\u05d3\u05d5\u05e7 \u05d4\u05d0\u05dd \u05d3\u05d9\u05d5\u05d5\u05d7\u05d9\u05d5 \u05e9\u05dc \u05d4\u05e0\u05d9\u05e9\u05d5\u05dd \u05e2\u05dc \u05d4\u05db\u05e0\u05e1\u05d5\u05ea\u05d9\u05d5 \u05de\u05e9\u05e7\u05e4\u05d9\u05dd \u05d0\u05ea \u05d4\u05de\u05e6\u05d9\u05d0\u05d5\u05ea \u05d5\u05d4\u05d0\u05dd \u05e9\u05d9\u05dc\u05dd \u05db\u05e8\u05d0\u05d5\u05d9 \u05d0\u05ea \u05d4\u05de\u05d9\u05e1\u05d9\u05dd\u00a0\u05e9\u05d4\u05d5\u05d8\u05dc\u05d5 \u05e2\u05dc\u05d9\u05d5 \u05d0\u05d5 \u05d4\u05ea\u05d7\u05de\u05e7 \u05de\u05d4\u05dd. \u05d4\u05e6\u05d4\u05e8\u05ea \u05d4\u05d5\u05df\u00a0\u05d4\u05d9\u05d0 \u05d3\u05d9\u05d5\u05d5\u05d7 \u05e9\u05dc\u00a0\u05ea\u05d5\u05e9\u05d1 \u05d9\u05e9\u05e8\u05d0\u05dc\u00a0\u05dc\u05e8\u05e9\u05d5\u05ea \u05d4\u05de\u05d9\u05e1\u05d9\u05dd\u00a0\u05e2\u05dc \u05db\u05dc \u05d4\u05e0\u05db\u05e1\u05d9\u05dd \u05e9\u05d1\u05d1\u05e2\u05dc\u05d5\u05ea\u05d5 \u05d1\u05ea\u05d0\u05e8\u05d9\u05da […]<\/p>","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-568","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/amuc.co.il\/en\/wp-json\/wp\/v2\/pages\/568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amuc.co.il\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/amuc.co.il\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/amuc.co.il\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amuc.co.il\/en\/wp-json\/wp\/v2\/comments?post=568"}],"version-history":[{"count":8,"href":"https:\/\/amuc.co.il\/en\/wp-json\/wp\/v2\/pages\/568\/revisions"}],"predecessor-version":[{"id":578,"href":"https:\/\/amuc.co.il\/en\/wp-json\/wp\/v2\/pages\/568\/revisions\/578"}],"wp:attachment":[{"href":"https:\/\/amuc.co.il\/en\/wp-json\/wp\/v2\/media?parent=568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}