{"id":7298,"date":"2015-04-03T12:50:15","date_gmt":"2015-04-03T12:50:15","guid":{"rendered":"http:\/\/www.wcpa.co.il\/?p=7298"},"modified":"2019-12-16T21:54:21","modified_gmt":"2019-12-16T21:54:21","slug":"donation","status":"publish","type":"post","link":"https:\/\/www.wcpa.co.il\/donation\/?lang=en","title":{"rendered":"Donation"},"content":{"rendered":"
\n
\n

According to Section 46 of the Income Tax Ordinance:<\/strong><\/h4>\n

\u201cA person who donated during a certain tax year the sum exceeding 340 new Shekel to a National Fund, or a Public Institute as per<\/strong><\/h4>\n

<\/p>\n<\/div>\n<\/div>\n

its meaning in Section 9(2) determined for this purpose by the Minister of Finance with the approval of the Knesset Finance Committee, 35% of the donation sum will be credited from the tax that he liable to pay in that year, only if no tax credit will be given in that certain tax year for a total sum of donations exceeding 30% of the tax-payer\u2019s taxable income in that year or 2,000,000 new Shekels, the lower of the two.\u201d<\/span><\/p>\n

A sum exceeding the crediting ceiling donated in that tax year, will be credited from tax according to the instructions of this section in the next three consecutive tax years, only if no credit is given in each of the three tax years, as aforesaid, due to a total sum of donations exceeding the credit ceiling.\u201d<\/p>\n

Following is the amounts adjustment dated January 1 2006 :
\nThe minimal sum for the total of donations granting crediting: 370 NIS a year.
\nThe maximal sum granting crediting: 2,165,000 NIS a year. In any case, the tax crediting will not exceed 30% of the taxable income.<\/p>\n

RULES FOR TAX CREDITING DUE TO DONATIONS TO PUBLIC INSTITUTES<\/p>\n

Special Approval for Public Institutes<\/p>\n

The tax crediting is granted due to donations to public institutes having a special approval according to Section 46 of the ordinance alone. It should be noted that most of the approvals have a limited validity \u2013 crediting due to institute will not be permitted, when the validity of the approval was not renewed [an approval validity is not extended, among other things, due to failure to present reports, faulty accounting, etc.].<\/p>\n

The list of institutes having an approval concerning donations appears in the Ministry of Finance web-site (www.mof.gov.il\/itc<\/a>).
\nConditions for granting tax crediting<\/p>\n

Any donor fulfilling the conditions is eligible for the benefit \u2013 whether it is a private individual, a business or a company.<\/p>\n

In order to obtain the tax crediting due to donation \u2013 the donation has to pass the following few tests:
\nPresenting an original receipt for the donation. If there is no original receipt enclosed, no tax crediting will be grated, unless a partnership or \u201chouse property\u201d company donation is involved, according to Section 64 of the Ordinance, where each of the partners is entitled to his relative share in the donation. (It is impossible to present an auditor\u2019s opinion, as accepted in the matter of approvals for tax deducted at source.)
\nThe institute is an institute approved for donation tax crediting. The test is, if, at the time of the donation, the institute was approved, and not later.
\nAnonymous donations will not be permitted for tax crediting, except: If the donation sum is lower than 400 NIS, and if the donation sum is pre-printed on the receipt.
\nThe receipt carries the name of the taxpayer, his\/her spouse or child up to 18 years of age.
\nThe institute data is printed, as required, on the receipt. These data include: Name, corporation number, etc., as well as details of the payment (Check, cash, standing order, etc.). The income tax accounting instructions oblige a public institute to print in the receipt the word \u201cdonation\u201d and the following sentence: \u201cThe institute has an income tax approval regarding donations according to Section 46 of the Income Tax Ordinance.\u201d If the receipt does not include all of the above, it is incompatible with the income tax instructions, and therefore no tax crediting will be given because of it.
\nDonations given in installments (standing order, postdated checks and credit cards) \u2013 the tax crediting will be given only on the sums repaid during the specific tax year. For the remainder \u2013 tax crediting will be given in the following tax year.
\nIf the something was given in exchange for the donation, no tax crediting due to the donation will be permitted. This means those cases where a certain service was acquired from the public institute that received the donation (old-age homes, schools, yeshivoth, sports classes, etc.). If a partial return was given for the donation (e.g., in a lottery or a public auction), a tax crediting will be given in the sum of the difference between the sum actually paid and the value of the return received. If the return value is lower than 200 NIS, and if it is negligible in relation to the sum paid as a donation \u2013 the entire payment will be considered a donation.
\nA donation as payment for a raffle ticket will be permitted for tax crediting only if the value of the prize expected in that raffle is symbolic. If the value of the prize expected in that raffle is considerable (a car, electric appliances, etc.), then there is a return for the payment for the raffle ticket, and therefore no tax crediting will be permitted here.
\nMoney equivalent donations \u2013 It is determined that giving services voluntarily will not be permitted for tax crediting. Giving a business stock as a donation will be taxed similar to a regular sale, and the taxable sum will be permitted for tax crediting as a donation against a receipt from the public institute. If the donation involves donation of property (art objects, land, computers, etc.) \u2013 the value of the donation will be determined by an estimator\u2019s assessment, and the assessment will be attached to the receipt.<\/p>\n

Receiving the crediting<\/p>\n

An individual and businesses not incorporated as a limited company: Tax crediting at the rate of 35% of the donation amount will be given. For example, if 100 NIS were donated, the donation will cause a reduction of 35 NIS in the sum that the taxpayer must pay for Income Tax in that year.<\/p>\n

Limited companies: The crediting is according to the company tax rate. For example: If 100 NIS were donated in 2006, the donation will cause a reduction of 31 NIS in the tax sum in that year.<\/p>\n

The tax crediting permission can be done in three possible ways:<\/p>\n

Course A<\/strong>
\nSubmitting an annual report to the Income Tax Authorities. This course is suitable to all taxpayers, even taxpayers who are not obliged to\u00a0 submit a report.<\/p>\n

Course B<\/strong>
\nMaking a tax adjustment by salaried workers during the\u00a0 tax year.<\/p>\n

Salaried workers wishing to make tax adjustments due to donations during the tax year (also within the framework of making additional tax adjustments), will refer to the income tax assessor, with Form 116: \u201cApplication for easement and tax calculation adjustment by the income tax assessor.\u201d<\/p>\n

The application will be reviewed in the same manner as all applications are reviewed. The application will be tested by a further examination: Donation reasonability in relation to the income will be examined as well (if the donation sum is not reasonable, no tax crediting will be given promptly).<\/p>\n

Within this framework, no approval will be given to donations in post-dated installments that were not made to date, or to money equivalent donations.<\/p>\n

Course C<\/strong>
\nReceipt of tax crediting directly by the employer. (Possible only for specific employers who received a special permit from the Income Tax Commission).<\/p>\n

In this case, it should be verified that the institutes receiving money donations have a permit according to Section 46 of the Ordinance; also, it should be verified that with donations in large sums for institutes that in essence are service givers (old-age homes, theatres, sports classes, etc.), the donor enclose a declaration that he did not receive in return for his donation the following: any service, or any privilege, or any benefit whatsoever.<\/p>\n

The Company\u2019s Activity Focuses on Four Basic Areas:
\nAccounting & Auditing<\/p>\n

\u2022 Accounting and auditing services
\n\u2022 Internal auditing of firms and organizations
\n\u2022 Consultation with professional accountants on finance and advanced accounting methods.
\nOptimizing Efficiency, Corporate Recovery and Representation of Businesses in Difficulties:<\/p>\n

\u2022 Corporate recovery
\n\u2022 Representation before tax authorities
\n\u2022 Negotiations with creditors
\n\u2022 Planning of tax factors in involved business transactions
\nAssisting Business Enterprise:<\/p>\n

\u2022 Assistance in recruiting capital from banks and other financial organizations in Israel and the world.
\n\u2022 Managing negotiations before financial bodies and authorities.
\n\u2022 Preparation of business plans and plans to optimize efficiency and corporate recovery.
\n\u2022 Assistance with business licensing, such as in obtaining fuel distribution licenses, etc.
\n\u2022 Establishment of financial systems and advise on their integration.
\n\u2022 Integration of systems management including ERP and PRIORITY.
\nIsraeli and International Taxation<\/p>\n

? Customized monthly financial statements in English or Hebrew, in Shekels, Dollars or Euros edited according to Israeli or American (SEC) securities regulations.
\n? Cash flow forecasts<\/p>\n

\n
Weinstein & Co. and Dov Weinstein CPA in Jerusalem and Tel Aviv are also known for the following services:<\/em><\/span><\/strong><\/span><\/div>\n
Starting a business in Israel, setting up operations in Israel, company formation in Israel, incorporation in Israel, limited liability company in Israel, how to open a bank account in Israel, Israeli company, LTD in Israel, Israel and Israeli legal business address, hiring employees in Israel, paying employees in Israel, accounting services in Israel, payroll in Israel, retirement provident funds in Israel, bookkeeping\u00a0services in Israel, office support in Israel, money transfer to from Israel, starting companies in Israel, regulatory compliance in Israel, how to setup business in Israel, business consulting in Israel.<\/em><\/span><\/div>\n","protected":false},"excerpt":{"rendered":"

According to Section 46 of the Income Tax Ordinance: \u201cA person who donated during a certain tax year the sum exceeding 340 new Shekel to a National Fund, or a Public Institute as per<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"page-sidebar-right.php","format":"standard","meta":{"footnotes":""},"categories":[104,1],"tags":[],"class_list":["post-7298","post","type-post","status-publish","format-standard","hentry","category-articles","category-international-tax"],"yoast_head":"\nDonation - Dov Weinstein & Co. 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