What's in This Checklist
- Why a Documents Checklist Matters
- Category 1: Identity & Family Status
- Category 2: Employment & Self-Employment Income
- Category 3: Real Estate
- Category 4: Investment Accounts & Retirement Savings
- Category 5: Capital Gains & Sales
- Category 6: Foreign Company & Partnership Holdings
- Category 7: Special Circumstances
- Documents We Retrieve For You
- Practical Tips for a Smooth Filing
Why a Documents Checklist Matters
Every year, the most common reason Israeli tax returns get delayed is not complexity or unusual circumstances. It is missing documents. A client sends most of what we need, we begin the return, and then we hit a gap: a missing Form 867 from a secondary bank account, a lease agreement that was never forwarded, a Form 106 from a part-time employer nobody remembered.
Each gap means a follow-up email, a wait for the client to locate the document, and another round of review once it arrives. What should take two weeks stretches to two months. Deadlines approach. Extensions get filed. Stress levels rise.
The solution is straightforward: know exactly what your CPA needs before you walk through the door. This checklist is the same one we send to every client at the start of filing season. It is organized by category so you can work through it systematically, and each item includes a note on where to find it.
Not every item applies to every taxpayer. Items marked "IF APPLICABLE" or "IF SELF-EMPLOYED" only apply in specific situations. If you are a salaried employee with one apartment and one bank account, your list is short. If you have foreign investments, real estate in multiple countries, and partnership interests, the list is longer. Either way, knowing the full universe of possibilities means nothing gets overlooked.
One important note before we begin: this checklist covers the Israeli annual return (Form 1301). If you are also a US taxpayer, your American return has its own requirements. Many of the documents listed here serve double duty for both returns, but we have a separate guide covering US-specific obligations.
Category 1: Identity & Family Status
These are the foundational documents that establish who you are and your filing status for the tax year. Most of these only need to be provided once, though we ask clients to confirm them each year in case anything has changed.
| Document | Who Needs It | Where to Find It |
|---|---|---|
| Israeli ID Card (Teudat Zehut) including the insert booklet ("Sepach") | Everyone — for you and your spouse | Your physical ID card. The Sepach is the folded insert inside the blue plastic sleeve that lists your family members and address history. If you have a biometric ID (smart card), you can download the Sepach equivalent from the Misrad Hapnim (Ministry of Interior) website or visit your local branch. |
| New Immigrant Certificate (Teudat Oleh) | IF APPLICABLE: New immigrants (olim chadashim) | Issued by the Ministry of Aliyah and Integration (Misrad Haklita) when you made Aliyah. If you cannot locate your physical copy, contact your local Misrad Haklita branch or request a replacement through their website. This document establishes your Aliyah date, which is critical for the 10-year exemption calculation. |
| Marriage or divorce documentation | IF APPLICABLE: Only if your marital status changed during the tax year | Marriage certificate from the Rabbanut (Rabbinical Court) or civil marriage certificate from abroad (with apostille if applicable). For divorce, the Get (divorce decree) from the Rabbanut or civil divorce decree. A change in filing status can significantly affect your tax calculation, credits, and deductions. |
A note on the Sepach: we specifically need the insert booklet, not just the card itself. The Sepach contains your family composition details that determine filing status, child credits, and spousal coordination. Many clients send a photo of the front of their ID card and assume that is sufficient. It is not. We need both sides of the card and the full Sepach insert.
Category 2: Employment & Self-Employment Income
This category covers how you earn your living. The documents differ substantially depending on whether you are a salaried employee, self-employed, or earn income from abroad.
| Document | Who Needs It | Where to Find It |
|---|---|---|
| Form 106 (annual employer summary) | Every salaried employee — one per employer, for you and your spouse | Your employer is required to issue Form 106 by the end of March each year. It summarizes your gross salary, tax withheld, pension contributions, and other deductions. If you changed jobs during the year, you need a Form 106 from each employer. Ask your HR or payroll department. Large employers often make it available through their payroll portal. |
| Profit & Loss Report or bookkeeping ledger | IF SELF-EMPLOYED: Osek murshe or osek patur | Your bookkeeper or accounting software. If you are an osek murshe (licensed dealer), this is typically produced by your bookkeeper as part of the bi-monthly VAT reporting process. If you are an osek patur (exempt dealer), you should maintain a basic income ledger. We need the full-year summary including gross income, expenses by category, and net profit. |
| US Form W-2 or 1099-NEC | IF APPLICABLE: Anyone receiving employment or freelance income from a US employer or client | Your US employer issues the W-2 by January 31 for the prior year. 1099-NEC forms come from any US client who paid you $600 or more. Check your US mail, your employer's online payroll portal, or the IRS "Get Transcript" tool if you cannot locate copies. These documents are necessary for both your Israeli return (to declare worldwide income) and your US return. |
For employees with multiple jobs during the year, the most common mistake is forgetting about a short-term position. If you worked somewhere for even two months, that employer must provide a Form 106, and the income must appear on your return. Review your bank statements for the year to identify every source of salary deposits if you are unsure.
For self-employed individuals, the quality of your bookkeeping directly affects the quality of your tax return. If your records are incomplete or disorganized, we will need to spend time reconstructing your financial picture before we can even begin the return. The cost of proper bookkeeping during the year is always less than the cost of reconstructing it at filing time.
Category 3: Real Estate
Real estate is often the most document-intensive category. Whether you own one apartment in Israel or multiple properties across countries, each property generates its own set of required documents.
| Document | Who Needs It | Where to Find It |
|---|---|---|
| Ownership deed (Nesach Tabu) | Every property owner — one per property, Israel and abroad | For Israeli properties: order from the Tabu (Land Registry) online at gov.il or visit your local Tabu office. For properties abroad: the equivalent title deed or property registration document from the relevant country's land authority. We need this to confirm ownership and calculate any applicable property-related deductions or exemptions. |
| Lease agreement (current) | IF RENTED: Anyone renting out a property | Your copy of the signed lease with your tenant. We need the current agreement (not expired ones) to verify rental income amounts, payment terms, and lease duration. If you use a property management company, they should have a copy as well. |
| Final Land Appreciation Tax assessment (Shumat Mas Shevach) | IF SOLD: Anyone who sold Israeli real estate during the tax year | From the attorney who handled the sale transaction. The attorney files the Mas Shevach declaration with the Israel Tax Authority, and once the assessment is finalized, a copy is sent to both the attorney and the seller. This process can take several months after closing. |
| HUD-1 / Closing Statement | IF SOLD OR BOUGHT ABROAD: Anyone who sold or purchased foreign real estate | From the closing attorney, title company, or escrow agent who handled the transaction. In the US, this is the HUD-1 Settlement Statement or the newer Closing Disclosure form. It details the purchase or sale price, closing costs, prorated taxes, and all financial aspects of the transaction. |
A Note on Israeli Real Estate Sales
If you sold real estate in Israel this year, the capital gains tax itself (Mas Shevach) is handled separately by the attorney managing the transaction. We only need the final tax assessment once it is issued, so we can incorporate the figures into your annual return correctly. You do not need to calculate the tax yourself or worry about the Mas Shevach filing process. That is between your attorney and the Tax Authority. Our role is to ensure the final numbers flow correctly into your Form 1301.
For property owners who rent to tenants, Israel offers several taxation tracks for rental income. The optimal track depends on your total rental income, your marginal tax rate, and whether the property is in Israel or abroad. We determine the best track as part of the annual return process, but we need the lease agreement and full rental income records to make that determination.
If you own property abroad, keep in mind that Israel taxes its residents on worldwide income, including foreign rental income. The 10-year new-immigrant exemption may shield this income if you qualify, but the property and its income must still be disclosed on the return.
Category 4: Investment Accounts & Retirement Savings
Investment and retirement accounts generate some of the most important documents for your annual return. Interest, dividends, and capital gains from these accounts are all taxable events that must be reported, even when tax was already withheld at source.
| Document | Who Needs It | Where to Find It |
|---|---|---|
| Form 867 (annual investment summary) | Everyone with an Israeli bank or brokerage account — one per account | Your Israeli bank or brokerage issues this automatically, typically by March 31 for the prior tax year. It summarizes all investment income: interest earned, dividends received, and capital gains realized through the account during the year. Log in to your online banking portal, check the "tax documents" or "annual reports" section. If you cannot find it online, call your branch and request it. |
| Consolidated 1099 / year-end statement | Anyone with a US brokerage account — one per account | Your US broker (Schwab, Fidelity, Interactive Brokers, etc.) issues the Consolidated 1099 by mid-February. It covers interest (1099-INT), dividends (1099-DIV), and proceeds from sales (1099-B). Check your broker's online portal under "tax documents" or "tax center." These are essential for reporting foreign investment income on your Israeli return and for coordinating foreign tax credits. |
| IRA / Roth IRA / 401(k) annual statement | IF APPLICABLE: Anyone holding US retirement accounts | From your retirement account custodian (Vanguard, Fidelity, etc.). The year-end statement shows your account balance, contributions, and any distributions. Even if you did not take distributions, we need the statement to track account values for planning purposes and to ensure proper Israeli treatment of these accounts. |
| Form 1099-R | IF WITHDRAWN THIS YEAR: Anyone who took distributions from US retirement accounts | Issued by your retirement account custodian by January 31. It reports the gross distribution, taxable amount, and any federal tax withheld. This is critical for your Israeli return because retirement distributions may be taxable in Israel depending on your immigration status and the source of the funds. |
A common question from clients with multiple bank accounts: yes, you need a Form 867 from every single Israeli financial institution where you hold accounts. If you have a savings account at Bank Hapoalim and a brokerage account at Bank Leumi, you need two separate Form 867 documents. Each institution reports only its own accounts.
For US retirement accounts, the Israeli tax treatment depends heavily on whether you are within the 10-year new immigrant exemption period and on the US-Israel tax treaty provisions. Distributions from traditional IRAs and 401(k) accounts may be fully or partially taxable in Israel, while Roth IRA distributions often receive more favorable treatment. We sort through the details as part of the return preparation, but we need the underlying documents to do so.
If you hold retirement accounts from other countries (UK pensions, Canadian RRSPs, etc.), the same principle applies: provide the annual statement and any distribution documentation. Tax treaty provisions vary by country.
Category 5: Capital Gains & Sales
If you sold securities, cryptocurrency, or other assets during the year, we need documentation of those transactions. Capital gains are taxable events, and the tax treatment depends on what was sold, when it was acquired, and where it was held.
| Document | Who Needs It | Where to Find It |
|---|---|---|
| Trade confirmation / annual summary of securities sold | IF SOLD: Anyone who sold stocks, bonds, mutual funds, ETFs, or cryptocurrency | For securities sold through a brokerage: typically included in the Consolidated 1099 (US) or Form 867 (Israel). For crypto: your exchange's transaction history or annual statement (Coinbase, Binance, Kraken, etc. all provide downloadable trade histories). For private sales of assets not held in brokerage accounts: the purchase and sale agreements. |
| Foreign tax withholding statement | IF APPLICABLE: Anyone who had foreign tax withheld on investment income or gains | Typically shown on the Consolidated 1099 (US) or the annual brokerage statement. For example, if your US broker withheld 25% on dividends paid to you as a non-US-resident, that withholding appears on your 1099-DIV. We need this to calculate your foreign tax credit on the Israeli return, which prevents double taxation. |
Capital gains calculations in Israel follow specific rules about acquisition cost, holding period, and applicable tax rates. For assets acquired before you became an Israeli tax resident, the calculation may involve a linear allocation between the pre-residency period (potentially exempt) and the post-residency period (taxable). The more complete your records of original purchase dates and prices, the more accurately we can calculate the tax and identify any available exemptions.
For cryptocurrency transactions, record-keeping is especially important. Many crypto exchanges have limited historical data retention. If you have been trading crypto for several years, export your full transaction history now and store it securely. Reconstructing crypto cost basis after the fact is time-consuming and expensive.
Clients sometimes ask whether small gains need to be reported. The answer is yes. Israel does not have a de minimis exemption for capital gains. Every realized gain, regardless of size, is a reportable event. The Form 867 from your Israeli bank captures most of this automatically, but gains from foreign accounts or private transactions must be reported separately.
Category 6: Foreign Company & Partnership Holdings
If you own or have an interest in a foreign business entity, additional disclosure and documentation requirements apply. Israel takes foreign entity ownership seriously, and the reporting obligations go beyond simple income reporting.
| Document | Who Needs It | Where to Find It |
|---|---|---|
| Entity formation documents & ownership percentage | IF APPLICABLE: Anyone who owns shares in a foreign company or holds an interest in a foreign entity | Your corporate attorney or registered agent. This includes the articles of incorporation, operating agreement (for LLCs), shareholder agreement, and any documents showing your ownership percentage. If the entity was formed in the US, your state's Secretary of State website may have copies of the formation documents on file. |
| K-1 Forms (US partnerships / LLCs) | IF APPLICABLE: Anyone who is a partner or member in a US partnership or LLC | The partnership or LLC issues Schedule K-1 to each partner or member, typically by March 15 (or by the extended deadline). The K-1 reports your share of the entity's income, deductions, credits, and other items. If you have not received your K-1, contact the entity's tax preparer or managing partner. K-1 delays are one of the most common reasons for late personal returns. |
Foreign entity ownership triggers specific Israeli reporting requirements beyond the annual return itself. Depending on your ownership percentage and the nature of the entity, you may need to file additional forms with the Israel Tax Authority disclosing the entity, its income, and its activities. A Controlled Foreign Corporation (CFC) with Israeli shareholders may also trigger deemed income inclusions under Israeli anti-avoidance rules.
For Americans in Israel, foreign entity ownership creates a particularly complex intersection of US and Israeli rules. The US has its own set of reporting requirements (Forms 5471, 8865, 8858, GILTI inclusions under Section 951A) that run in parallel with the Israeli requirements. Missing these forms carries steep penalties on both sides. If you own any interest in a foreign entity, mention it early in the engagement so we can coordinate the full set of filings.
If your ownership interest changed during the year (you bought additional shares, sold a portion, or the entity issued new equity), provide documentation of those transactions as well. Changes in ownership percentage can trigger reporting events and may affect the tax treatment of distributions received during the year.
Category 7: Special Circumstances
Certain life events and financial arrangements require additional documentation that does not fit neatly into the categories above.
| Document | Who Needs It | Where to Find It |
|---|---|---|
| Signed divorce agreement & court judgment | IF PAYING ALIMONY: Anyone making alimony payments under a court order | From your divorce attorney or the court records. The signed agreement specifies the alimony amount and terms. The court judgment (psakdin) formalizes the arrangement. Alimony payments are deductible for the payer under Israeli tax law, but only with proper documentation of the court-ordered obligation. |
Alimony deductibility in Israel requires that the payments be made pursuant to a binding court order or a binding agreement ratified by the court. Informal arrangements between former spouses, even if documented in writing, typically do not qualify for the deduction. If you are making alimony payments, ensure you have both the agreement and the court's formal approval of it.
Other special circumstances that may require additional documentation include: large charitable donations (receipts from recognized charities under Section 46), medical expenses above the threshold (receipts and medical documentation), disability certifications (from the National Insurance Institute or medical authorities), and guardianship or power-of-attorney arrangements for dependents.
If any unusual financial event occurred during the year, such as receiving an inheritance, winning a legal settlement, receiving insurance proceeds, or completing a significant financial transaction, mention it to your CPA even if you are unsure of the tax implications. It is far better to disclose something that turns out to be non-taxable than to omit something that should have been reported.
Documents We Retrieve For You
Documents We Retrieve For You
With your power of attorney on file, our office can independently retrieve several items directly from the Tax Authority and National Insurance Institute. You do not need to send us:
- Your own Form 106 (if salaried) — we pull it from the Tax Authority's system using your authorization
- Income tax withholding confirmations — already reflected in Tax Authority records
- Most National Insurance benefit confirmations — we retrieve these directly from Bituach Leumi
This means your actual to-do list is shorter than it first appears. Focus your time on the documents only you can provide: foreign account statements, lease agreements, entity documents, and anything from institutions that we cannot access on your behalf.
The power of attorney (Yipui Koach) that you sign when you engage our firm authorizes us to interact with the Israel Tax Authority and certain other government agencies on your behalf. This includes pulling your employment records, viewing your tax file, and submitting filings. The authorization is specific and limited to tax-related matters.
That said, there are documents we cannot retrieve for you. Foreign financial institutions do not recognize Israeli powers of attorney, so you must obtain your US brokerage statements, retirement account statements, and K-1 forms yourself. Similarly, private documents like lease agreements, divorce decrees, and entity formation documents are not held by any government agency and must come from you.
Practical Tips for a Smooth Filing
Create a Digital Folder
Create a dedicated folder on your computer or cloud storage for each tax year. As documents arrive throughout the year (Form 106 in March, Form 867 in April, K-1s whenever they appear), drop them into the folder immediately. When it is time to meet with your CPA, everything is in one place.
Do Not Wait Until the Deadline
The Israeli tax filing deadline for individuals is April 30 for the prior year (with extensions commonly available until July 31 for represented taxpayers). But starting the process in April means you are competing with every other taxpayer for your CPA's attention. Begin gathering documents in January or February, schedule your appointment for March, and aim to file early.
Send Documents Digitally
Scanned PDFs or clear photos are perfectly acceptable. We do not need original paper documents in most cases. Name your files clearly (for example, "Form_867_Hapoalim_2025.pdf" rather than "scan001.jpg") so we can identify them quickly.
Review Last Year's Return
Your prior year return is the best guide to what documents you need this year. If last year's return included rental income, you still need a lease agreement this year. If it included US brokerage income, you still need the Consolidated 1099. Review last year's return and confirm you have the updated version of every document that appeared on it.
Communicate Changes Proactively
If something changed this year, such as a new job, a property purchase or sale, a new foreign bank account, a new business entity, or a change in family status, tell your CPA before the appointment. Changes often require additional documentation and may affect the tax strategy. Surprises during the filing process create delays.
Keep Records for Seven Years
The Israel Tax Authority can audit returns for up to six years after filing (seven in some circumstances). Keep all supporting documentation for at least that long. Digital copies stored in the cloud are ideal since they are searchable, do not degrade, and cannot be lost in a move.
Ready to Start Your Return?
Send us your documents using this checklist and we will take it from there. Free 30-minute consultation, no obligation.
Schedule Your Free Consultation →The Bottom Line
Filing an Israeli annual tax return does not have to be stressful. The key is preparation. By gathering the right documents before your CPA appointment, you eliminate the back-and-forth that delays most returns.
Here is a quick summary of the essentials:
- Everyone needs: Teudat Zehut with Sepach, Form 106 (if employed), Form 867 (if you have investment accounts)
- Property owners need: Ownership deeds, lease agreements (if rented), sale documentation (if sold)
- US taxpayers also need: Consolidated 1099, retirement account statements, K-1 forms (if applicable)
- Business owners need: Profit and Loss reports, entity formation documents
Use this checklist as your guide. Work through it category by category. And remember: if you have signed a power of attorney with our office, we handle the Tax Authority paperwork so you do not have to chase down Form 106 or withholding confirmations yourself.
If you have questions about any document on this list, or if your situation involves something not covered here, reach out. We are happy to walk through your specific filing requirements in a free consultation.