Accountant for Osek Murshe (Licensed Dealer) in Israel: 2026 Guide

Who must be an osek murshe

You must register as murshe if turnover is above ₪122,833 (the 2026 patur ceiling), or if you work in a profession that the VAT regulations exclude from patur status, such as lawyers, accountants, doctors, architects and tax advisers. Some people choose murshe anyway because their Israeli business clients reclaim VAT. Registration goes VAT first (form 821), then income tax, then National Insurance.

VAT in 2026: 18%, bi-monthly up to ₪1,775,000

VAT has been 18% since 1 January 2025. You charge it on sales, offset VAT paid on business expenses, and pay the difference by the 15th of the month after each period (the 19th when filing online without a detailed report). Up to ₪1,775,000 of annual turnover you report every two months; above that, monthly. From 1.1.2027 the threshold rises to ₪1,805,000.

If you bill clients abroad, the VAT treatment of exported services can differ from domestic sales, depending on the service and the contract. This is one of the first things I check with olim and relocation clients.

Advance payments

During the year you pay income tax advances, usually as a percentage of turnover based on your last assessment, and National Insurance advances based on expected income. In 2026 National Insurance is 7.70% of monthly income up to ₪7,703 and 18% above, up to ₪51,910. When your income changes significantly, I ask to update the advances so you don't face a large bill at year-end.

Withholding and bookkeeping certificates

Israeli companies and public bodies check two certificates before paying you. The withholding-tax certificate sets how much they must deduct from each payment (0% means full exemption). Without a valid one they deduct at the maximum rate; professional publications commonly cite 30%. The bookkeeping certificate confirms you keep books properly. Since 2023 they are issued separately, and both are renewed yearly; the withholding certificate is usually valid until 31 March of the following year.

The annual return

Self-employed people file the annual return (form 1301) online. For tax year 2025 the Tax Authority's online deadline was 30 June 2026. Filing through a representative usually allows an extension, which changes from year to year.

When to think about a company

According to professional publications, a common rule of thumb (not a law) is that a company starts to pay off at around ₪300,000–400,000 of annual profit. Individuals pay 31% from ₪228,001 and 35% from ₪301,201 in 2026, while companies pay 23%; but dividends add 30% for a major shareholder, so the advantage comes mainly from leaving profits in the company.

1. 1
   Free first call

   In English: your business, clients and expected turnover.
2. 2
   Set-up

   Certificates, advances and reporting frequency checked and fixed.
3. 3
   Routine

   You send documents digitally; I handle the books and VAT reports.
4. 4
   Year-end and return

   Pension planning, then the annual return, explained in plain English.