Tax Coordination

Te’um Mas

תיאום מס

Te’um Mas - תיאום מס - Tax coordination, is a procedure that helps employees prevent paying excess taxes, particularly when they have income from multiple sources. It is important to obtain in order to ensure that the correct amount of tax is deducted from your earnings.

When to Request a Te’um Mas

A Te’um Mas may be required in several situations:

• Multiple income sources: This includes working more than multiple jobs simultaneously, receiving both a salary and an early pension or other allowances, or having additional sources of work related income.
• Changing jobs: If you switch employers during the year, tax coordination helps ensure your tax deductions are calculated correctly across both periods of employment.
• Breaks in employment: This applies if you are returning to work after a period of receiving benefits such as maternity leave, unemployment, or unpaid leave. Without coordination, the tax system may incorrectly assume you earned a full annual salary, potentially leading to over-taxation.
• Special tax credits: While standard tax credits are often handled automatically by your employer, some special reliefs (such as a tax credit for a dependent with special needs or changes occurring during the year) may require a formal tax coordination request.

How to Obtain a Te’um Mas

You can receive a Te’um Mas in one of three ways:

• In person: Visit a Mas Hachnasa – מס הכנסה – Income Tax office to either submit Form 116 and supporting documents at an information station in the branch or schedule an appointment with a tax assessor.
• Online: Complete the process digitally through the Tax Authority website.
• Through a representative: You can authorize an accountant or tax advisor to handle the coordination on your behalf.

Key Information to Remember

• The service is free of charge unless you hire a third-party representative.
• A Te’um Mas is valid only for the specific tax year and expires on December 31st. It must be renewed annually.
• It is recommended to obtain a Te’um Mas at the beginning of the year, though it can be done at any point.
• If you did not obtain a Te’um Mas, you may be eligible to apply for a tax refund for up to six years retroactively. See this guide for an explanation of the process.

Additional Important Information

Bituach Leumi – ביטוח לאומי – National Insurance Institute

• Employees with multiple income sources should also arrange for deduction coordination with Bituach Leumi to avoid overpaying insurance fees.

Disclaimer: This information is for general guidance only and should not be considered legal advice.