Rachel Meshulam
Senior manager, Head of bookkeeping services
Effective bookkeeping, payroll, and accounting systems are essential for any active business in Israel, whether it is a local branch or subsidiary. Compliance with Israeli tax regulations requires adherence to specific requirements not common in other countries.
For example:
- The Israeli Tax Authorities (ITA) require the use of an approved bookkeeping software for filing reports.
- Monthly compliance reports including tax withholding, social security, VAT, and CIT down payments are mandatory.
- VAT reporting requires a digital file with a fixed format, which can only be generated by localized systems.
- Israeli businesses are required to withhold a certain percentage from payments to local vendors and report it monthly.
- Local payroll calculations require specialized systems, with annual and twice-yearly compliance reporting requirements.
- Global corporations managing their sub-entities from a central bookkeeping unit and AP teams may find compliance with Israeli regulations challenging.
- Our Global Outsourcing Team at BDO Israel offers the following services to support your local operations:
- Bookkeeping, accounting, and payroll assistance tailored to your needs.
- Preparation and filing of periodic and annual compliance reports to the relevant tax authorities.
- Liaising with corporate central accounting, AR, and AP teams as required.
