The Ministry of Finance and the tax authority reached an agreement under which the ceiling of the income, allowing to obtain the status of the entrepreneur, freed from the case opening in the VAT («Osek Patur»), will increase by half from 100 thousand shekels a year to 150 thousand shekels a year.
This step will allow many small businesses to avoid the additional bureaucracy and significantly reduce the cost of accounting, as the owner of the status «Osek Patur» must report their income only once a year.
In addition, the parties agreed on a significant expansion of the list of professions that will be able to obtain this status. In particular, it will include lawyers, architects, typists, etc.
According to estimates by the tax administration, this move will cost the state 350 million shekels a year. The amendments must be approved under the law on state regulation 2019 and to enter into force from January 2019.