If you completed higher education or vocational training at a recognized university or college in Israel from 2005 and onwards, you may be eligible for a reduction in taxes. You need to fill out a 119 tax form and attach a photocopy of the degree / certificate as well as a letter from the academic institution, which specifies your name and Israeli ID # and the date upon which you are eligible for the degree and the number of years you studied. You also need to check the appropriate box on the reverse side of your annual 101 tax form and attach the 119 form and photocopies listed above to be handed in to your employer (payroll or HR)
There is no need to go to the tax authorities, this tax reduction is given via your payslip directly by the employer.
The 119 tax form can be downloaded here: (copy and paste into a new browser window)http://www.finance.gov.il/taxes/tfasim_mas.htm
(you will need to scroll down – the forms are listed by number)
(the form is in Hebrew and instructions are on the reverse side)
The tax reductions are as follows:
1. Individual, Israeli citizen who is entitled to a BA
A) If you are were entitled to your BA in 2005 – 2006;
1/2 of a tax credit point for the number of years studied (up to 3 years max) starting from the tax year following the year of entitlement to the BA.
B) If you were entitled to your BA from 2007 onwards;
1 full tax credit point for the number of years studied (up to 3 years max) starting from the tax year following the year of entitlement to the BA.
2. Individual, Israeli citizen who is entitled to a MA
If you were entitled to your MA from 2005 onwards:
1/2 of a tax credit point for the number of years studied (up to 2 years max) starting from the tax year following the year of entitlement to the MA.
3.Individual, Israeli citizen who is entitled to a Phd (in medicine or dentistry)
A) If you completed your Phd studies in 2005 or 2006;
1 full tax credit point starting from the tax year following the year of completion of studies and for a period of 5 tax years.
B) If you completed your Phd studies in 2007 or later;
1 full tax credit point starting from the tax year following the year of completion of studies and for a period of 3 tax years, And 1/2 of a tax credit point during the next 2 tax years.
4. Individual, Israeli citizen who is entitled to a 3rd accademic degree
3rd degree via direct itinerary or Phd of medicine or dentistry only !
5. Individual, Israeli citizen who is entitled to a certificate of profession
An individual, Israeli citizen who has completed studies of a profession and is entitled to a certificate in that profession. from 2006 onwards, is entitled to 1/2 tax credit point from the tax year following the year of completion of studies and for a period equal to the number of years studied, but no more than 3 years.
This includes; teaching (not acedemic studies) of at least 1,700 hours. The certificate needs to be government approved or government issued.
Notes:
A) In 2011 one tax credit point = 209 shekels.
B) Acedemic degree – as recognized by council of higher education law, 1958. A complete list of approved institutions is available here: www.che.org.il
C) An employee may choose between options 1-4 above or 5.
D) If an employee receives tax credits for a BA and later completes a thrid acedemic degree (option 3 above) is entitled to receive the difference according to option 3.
