Company or self-employed: what do you keep?
Compare working as an osek with running your business through a company, and find the split between salary and dividends that leaves you the most.
A personal tool, not professional advice. These are calculation tables I built for my own decisions and now share freely. Please check every figure and assumption yourself before relying on it.
Your business
Revenue minus business expenses
Tax credit points
2.25 pointsDisabled child, single parent, alimony, settlement…
- Israeli resident2.25
- Your points in 20262.25 = ₪545 / month
What you keep, by monthly salary
The company pays you a salary and distributes the rest as dividends. The gold dot is the best split.
Between ₪0 and ₪46,690
Company, salary and dividends
₪30,983
What you keep per year
Income tax and Bituach Leumi on the whole profit.
23% corporate tax, then 30% tax on dividends.
The whole profit is paid as salary, with employer Bituach Leumi.
The salary that makes the most of the lower tax brackets, the rest as dividends.
Best split: ₪19,065 salary per month
These calculators are spreadsheets I originally made for my own use, shared as they are to help you think things through. They give estimates based on the published rates for the current tax year and on the assumptions you enter, and they may contain errors or simplifications. They are not tax, legal or financial advice: check all the information yourself and with a licensed accountant, lawyer or mortgage adviser before making any decision.
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