Business
Israel — Business: Annual Compliance
Israeli employers file an annual Form 126 and small businesses report income tax annually, with exempt dealers using a shortened report.
VerifiedGovernment / official sourceIsrael Tax Authority / National Insurance Institute — Form 126 and small business reportingLast reviewed: 2026-10-23
Key facts
- Employers submit Form 126 annually for the preceding tax year with each employee salary and deductions; the Tax Authority offers a submission confirmation system for Forms 126 and 856.
- Small business owners below the exempt-dealer turnover limit (NIS 122,833 in 2026) file a shortened annual report; Form 137 is no longer required from the 2025 tax year.
- Companies pay an annual fee to the Registrar once every calendar year except the year of registration.
- Failure to file leads to an assessment against the employer file.
Steps
- Step 1: Determine Business Structure — Identify the specific requirements for annual compliance based on the business's structure (e.g., sole proprietorship, partnership, company).
- Step 2: Gather Required Documents — Collect necessary documents, including financial statements and other relevant records.
- Step 3: File Annual Reports — Submit the annual reports to the Registrar of Companies within the specified deadline.
- Step 4: Pay Any Required Fees — Pay any applicable fees for filing annual reports and other compliance documents.