Premium accounting for elite high-tech consultants, independent contractors and boutique agencies. Streamlined, fully digital tax registration; comprehensive annual returns and capital declarations; and strategic planning for the crossover from sole proprietor (עוסק מורשה) to incorporated company (חברה בע״מ) — with full protection against Pocket Company (חברת ארנק) reclassification.
When you go independent there's a required sequence of actions with the tax authorities. We handle all of it:
Depending on your volume — monthly or bi-monthly VAT (Form 874), income tax advances (Form 102), withholding on subcontractors and annual reconciliations. All filed on time with reminders and reviewed by us.
We prepare your annual personal return, optimize deductions (pension, study fund, life insurance, home-office expenses, professional education), prepare the capital declaration (הצהרת הון) when the ITA requires it, and plan the coming year — including whether it's time to incorporate.
Most freelancers miss credits and refunds they're entitled to. We map every applicable item and file amended returns up to six years back where relevant:
If you're a developer, designer, consultant or marketer working directly with clients in the US, Europe or Asia, your tax structure needs specialist handling. We support hundreds of global freelancers and know every nuance:
Most freelancers also build a personal investment portfolio. We fold all passive income into a single, tax-efficient annual return:
Incorporation can be a major strategic step, but it carries the risk of being reclassified as a Pocket Company under Section 62A of the Israeli Income Tax Ordinance. The rule targets professionals using an Ltd shell for what is effectively employment — reclassification eliminates the tax benefit and applies ~48% effective tax. We structure the setup to be safe:
Osek patur (VAT-exempt dealer) is available under an annual revenue threshold updated yearly by the ITA. Above the threshold — or if your clients need VAT invoices — you must register as osek murshe. We assess the right fit at setup.
It depends on income, expenses, savings and family situation. We run a personal simulation comparing after-tax cash — usually incorporation becomes attractive above a certain net profit range, but always subject to Pocket Company (חברת ארנק) risk analysis.
The ITA periodically requires self-employed individuals to file a personal statement of assets and liabilities. Differences between statements are treated as taxable income unless explained. We prepare and defend it.
An Israeli self-employed invoicing a foreign client applies 0% VAT under Section 30(a)(5) — no VAT charged, but input VAT is still recoverable. Invoices in English, currency conversion at the correct rate, and W-8BEN handling for US clients are all part of the setup we manage.
Section 62A of the Israeli Income Tax Ordinance targets one-person companies used to shelter what is effectively employment income. Classification as a Pocket Company eliminates the corporate tax benefit and applies effective tax of ~48%. We structure incorporation to prove genuine business substance — multiple clients, business risk, real investment.
All areas of expertise of our boutique CPA firm in Herzliya Pituach.
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