The current tax year is coming to an end. This is exactly the right time to make financial arrangements: organize documents, check advance payments, do inventory counts, deposit money in advanced training funds and more. Whether you are an individual or a company, there are things that can be done before year-end that might save you money and/or headache. We have compiled a number of helpful tips to assist you to complete a successful year.
General Tips:
- . Pay all your business expenses (Salaries, rent, etc.) before 31.12.2018
- Postpone new revenue until the beginning of 2019
- Pay tax advances for 2018, which have not yet been paid, before 31.1.2019 in order to avoid interest and linkage charges.
- Make an organized list of all your business expenses. You will be surprised to find that some of them are considered a recognized business expense for tax purposes, such as gifts, out-of-office hospitality, in-house refreshments, travel abroad, professional literature, fixed assets, bank fees and interest expenses, mobile phones, vehicles, and even household expenses such as rent, municipal taxes, electricity.
Company Tips:
- Deposit into the bank before 31 December all funds already received. If this is not possible, deposit the money on January 1 on a separate deposit form!.
- Make an orderly list of all the funds in your possession as of December 31, Including cash, checks, deferred checks (if not deposited), and the balance of the cash in the petty cash fund.
- An updated list of December 31 receivables, payables, and expenses to be paid.
- Do an inventory count in advance and make an ordered list of all items you have as of December 31. Enter items whose original cost is higher than their current value in a separate list.
Self-Employed Tips:
- Before 31/12/2018, pay the Bituach Leumi payment for December due 15 January 2019.
- Top up payments to the maximum allowed to the provident funds, managers' insurance, or advanced training funds before 31 December.
- Contribute to nonprofits and associations that have the approval of Section 46 of the Tax Ordinance before the beginning of the year to receive tax relief (unless you already have a loss).
- Update your accountant If you have a new child in the family, and send a copy of the appendix of your Teudat Zehut. There are tax credits available to parents of young children. Furthermore, parents who have children with learning disabilities, such as ADD or ADHD, can be eligible for tax benefits, depending on the level of disability.
- Students are entitled to tax credits for the year following graduation.
- Remember to update your accountant if there is a change in family status from the previous year. If you are treating a child, spouse or parent who is incapacitated, credits can be claimed in most cases.
This article should not be viewed as a substitute for consultation with a qualified CPA. This article is based on public information that is open to the public and may be based on data that may be subject to change. The information presented in the article is only supporting material and this information should not be viewed as factual or as full and exhaustive information of the aspects involved with the authorities. The Company and / or its officers and / or its managers and / or its employees and / or anyone acting on its behalf do not assume any responsibility whatsoever for any direct or consequential loss resulting from the use of this article.
