Certified Public Accountant - Tax Returns in Holon

What is a Tax Return and Who is it Relevant For?

A tax return is a sum of money that the Israeli tax authority returns to you when it is discovered that you have paid more income tax than required in the tax year. This occurs in various scenarios: a self-employed individual who incurred higher expenses than anticipated, an employee who received duplicate withholdings from their employer, or an authorized business owner who miscalculated their tax advance payments.

Most of the clients we see in Holon and the Tel Aviv metropolitan area — self-employed individuals, authorized business owners, and small companies — do not invest time in proactive tax planning. They close the year, submit an annual report, and then discover they are entitled to a refund. Typically, those active in services, retail, e-commerce, or startups are expected to receive tax returns in certain years, provided that reporting is properly organized.

The point that is not always clear: a tax return does not occur automatically. You must submit a correct annual report, and the tax authority will examine your entitlement. If you are in Holon and unsure whether you are entitled to a refund — this is precisely what we help clarify.

Tax Planning — How to Avoid Unnecessary Expenses?

Tax planning is not something you do in the next tax year. It starts in January, when you open a business or begin self-employment. If you are in Holon and opened an authorized business this year, you can already plan now: how much tax advance payments to pay, whether it is worthwhile to open a training fund, whether to reduce certain expenses or defer expenses for tax benefit.

Most self-employed individuals pay excessive tax advance payments because they did not perform an accurate calculation at the beginning of the year. By the time they reach the annual report, they are already out of pocket. This is where an accountant's guidance comes in — a systematic review of recognized expenses, proper documentation, and calculation of true tax advance payments. In Holon, as everywhere in Israel, the law is the same — but the adaptation to your business is personal.

If you are employed and have additional income (self-employment, director fees in a family company), tax planning is critical. Usually, employees are not aware that they may be entitled to a tax refund because their employer deducted income tax based on a standard table, and not according to their actual situation.

How the Tax Refund Process Works — Step by Step

1. Document Collection: We request all relevant documents from you — payslips, expense invoices, bank confirmations, bank statements. In Holon, we work both over the phone and digitally — you can upload files to the portal or send an email.
2. Review and Organization: A certified public accountant in Holon reviews every document, verifies that expenses are recognized, and organizes the bookkeeping accordingly. If documents are missing — we notify you in time, not at the final stage.
3. Tax Calculation and Refund: We calculate the correct tax on all your income sources, deduct the legally permitted deductions (advance payments you have already made, national insurance, pension, education fund), and arrive at the tax you need to pay or the refund due to you.
4. Filing the annual return: A certified public accountant in Holon files the return with the tax authority — digitally, in the correct form, with all required declarations. We keep a copy and update you upon receipt.
5. Follow-up and Handling Inquiries: If the tax authority sends questions or clarification requests — we handle them. You do not need to be in direct contact with the tax authority; we handle the responses.
6. Receiving the Refund: Once the tax authority approves the return, the refund is transferred to your bank account. Typically, this takes a few weeks to two months from filing the return.

This entire process — from document collection to receiving the refund — is what we assist with. In Holon and Ramat Gan, we work with self-employed individuals and small businesses who do not want to deal with these details themselves.

What You Need to Know About Income Tax and Reporting

In Israel, anyone with income is required to report to the tax authorities. If you are a licensed professional, self-employed, or business owner — you must submit an annual tax return each year. For salaried employees, the employer handles the reporting, but if you have additional income — you must file a return yourself.

tax prepayments are payments you make each year to "pay in advance" your tax liability. Self-employed individuals and licensed professionals make prepayments on fixed dates (usually in specific months of the year). If you overpay prepayments, you receive a refund at the end of the year. If you underpay, you must pay an additional amount.

One point that is not always clear: if you are in Holon and it is your first year as self-employed, you do not need to pay tax prepayments in the first year. Only in the second year, based on your income from the first year. This is something most people do not know about, and it can save them significant money.

Recognized expenses are expenses that the tax authorities acknowledge as part of your business — employee salaries, office fees, insurance, bank charges, and raw materials. Not every expense is recognized — for example, personal expenses or gifts. We review every expense to ensure it is recognized, as this will directly impact your tax liability.

Common Tax Planning Mistakes — How to Avoid Them

• Failure to report expenses or income: The most common mistake is that self-employed individuals report income but "forget" about part of their expenses. Or vice versa — they report expenses unrelated to their business. We review every line in the report to ensure it is correct.
• Incorrect calculation of tax advance payments: If you calculated advance payments yourself and made an error — you may overpay or face tax disputes. We calculate advance payments based on your actual income, not guesswork.
• Failure to maintain records: Invoices, receipts, bank transactions — all of this must be kept for years. If you don't maintain records, you cannot prove your expenses to the tax authorities. We help organize documentation in a way that is easy to track.
• Late submission of annual report: If you fail to submit an annual report on time, you may face fines and interest. In Holon, as everywhere in Israel, the deadline is fixed. We ensure you don't miss it.
• Failure to report foreign income or additional income: An employee who has income from self-employment abroad, or dividends from a family company — must report it. If not reported, it may lead to a tax authority investigation.
• Failure to use legal tax deductions: There are tax deductions that businesses and self-employed individuals can use — training fund, self-employed health insurance, research and development expenses. If you don't use them, you pay higher tax than required.

When Should You Consult a CPA in Holon?

If you are in Holon and any of the following points apply to you — it is time to seek professional advice:

• You opened a licensed business or started self-employment this year, and you are unsure how to plan taxes.
• You are closing a business year and don't know if you are entitled to a tax refund.
• You are an employee with additional income (self-employment, dividends) and are unsure whether you need to file a report.
• You received a letter from the tax authorities regarding an audit or inquiry — and it seems confusing to you.
• You are a business owner or nonprofit organization in Holon, and want professional accounting support.
• You are engaged in a startup or e-commerce business, and your expenses change every year.
• You are unsure whether certain expenses of yours are recognized by the tax authorities.

Ben Or Cook CPAs work with all these categories in Holon, Ramat Gan, Petah Tikva, and throughout the greater Tel Aviv area. We offer a free initial consultation meeting — where we listen to your situation and explain how we can help.