As 2025 comes to a close, it’s the perfect time to review a few key financial actions that can make a real difference to your bank account. Many people leave money unclaimed simply because they don’t take the time to check their eligibility for tax benefits, refunds, and recognised expenses. A brief end-of-year review can yield significant savings, or even a tax refund.
One of the most important steps for salaried employees is updating Form 101. You will have been required to fill out this form at the beginning of the year. This form determines the amount of tax that will be deducted from your salary throughout the year. Any personal change: marriage, divorce, the birth of a child, or a change in eligibility for tax credits. If there was a change, it should be updated as soon as possible. When Form 101 is updated correctly, tax benefits can be applied retroactively for the entire year. If it is not updated, you may still be entitled to the money, but you will need to apply separately for a tax refund.
Salaried employees or pensioners who have income from multiple sources, as well as salaried employees who are entitled to various tax reliefs, can carry out a tax coordination (תיאום מס) to avoid paying excess tax during the tax year.
The tax coordination process is free of charge and can be completed through a short and simple procedure. It can be done independently, without the need to use external service providers who charge a fee for this service. To do a tax coordination (תיאום מס) click here https://lnkd.in/dNthPtAx
This is also a crucial time to review your Pension, Kupat Gemel and Keren Hishtalmut. This is important, especially if you are self-employed. All these schemes can provide valuable tax benefits, but only if they are made correctly and on time. A quick review before year-end can help ensure you are maximising these benefits.
Charity: Donations to recognised organisations can qualify for tax credits, so make sure you have the relevant receipts that comply with סעיף 46. Similarly, self-employed individuals should review their recognised expenses to ensure everything is properly documented and reported. Be mindful of the Cash Law — payments over ₪6,000 must be made via bank transfer or other approved methods.
You still have time to take care of these items before the end of the year can increase your refund, reduce your tax bill, and give you a stronger financial start to the year ahead.