Introduction:

An Oleh Hadash (New Immigrant) is entitled to income tax Credit Points for 42 months from his/her oleh’s immigration date into Israel
The value of the benefit is from between 216-648 NIS per month (when the discount is calculated on a yearly basis)
If the tax year is over, the oleh can submit a request for a tax return retroactively for up to 6 years
To calculate tax credit points until and including 2016 see the Calculator for Tax Credit Points - relevant until 31.12.2016 on the Tax Authority website

Olim Hadashim (New Immigrants) are entitled to income tax credit points for 42 months from their immigration date into Israel.

  • The benefit is given as follows (the refund is given on a yearly basis):
    • For the first 18 months after making aliyah the oleh is entitled to 3 monthly points (i.e. NIS 648 per month).
    • For the next 12 months the oleh is entitled to 2 monthly points (i.e. NIS 432 per month).
    • For the remaining 12 months the oleh is entitled to 1 monthly point (i.e. NIS 216 per month).
  • The counting of the 42 months starts when the oleh receives the teudat oleh (immigration certificate) and continues also uninterrupted even if the oleh has no income. I.E. - if the oleh has no income during the 42 months, he/she can not take advantage of the benefit.
  • The period of regular IDF service or the study period in a tertiary educational institution will not be taken into account. In other words, an oleh who emigrated to Israel and enlisted in the IDF or started studying at a tertiary educational institution before having completed 42 months in Israel, can enjoy the benefit after discharge from the IDF or after the completion of studies. If the oleh has taken advantage of some of the benefit before enlisting or before starting studies, the oleh will be eligible after release from the army or conclusion of his/her studies, for the rest of the benefit which has not yet been utilized.

How is the benefit calculated?

  • The benefit is given according to months since aliyah, but in actuality is a yearly refund given for each tax year. For every tax year the seniority of the oleh each month will be checked and the monthly number tax credit points will determine the amount of the yearly tax refund.
  • If the oleh has not worked for a number of months during a tax year, he can take advantage of his/her tax points for the deduction of taxes which he/she must pay on his/her salary during that part of the year in which he/she did work.
Example
An oleh who immigrated on 01.09.2010 (September 1, 2010) is entitled, during the 2010 tax year to 3 credit points for every month after his aliyah. I.E. - he/she is entitled to 12 monthly credit points in the tax year (3 credit monthly points for each one of the four months: September, October, November, December).

If the oleh started to work only on 01.12.2010, i.e. he/she worked for only one month during the tax year, he/she can receive the full 12 credit points from income tax during that month.

In 2011 the oleh will be entitled to 3 credit points for every one of the months of the year (in total 36 credit points for 12 months). The oleh can take advantage of the full 36 points during the tax year even if he/she has not worked during part of that year.

In the 2012 tax year the oleh will be entitled to 3 monthly credit points for the first 2 months (because he/she utilized 16 of the 18 months in which he/she was entitled to the benefit) and 2 monthly credit points for each one of the remaining 10 months. In total the oleh is entitled, during the 2012 tax year, to 26 credit points on an annually calculated basis. The oleh may also take advantage of them if he/she worked only during part of the year.

Who is Eligible?

How to Claim It?

Please Note

  • Credit points are given to employees who are Israeli residents only.
  • Credit points are given to an oleh in addition to the 2.25 credit points given to the oleh for being an Israeli resident.
  • If the oleh meets other criteria that entitle him/her to tax credit points, he/she is able to add up all of the credit points for which the criteria are met (unless specifically specified otherwise). For more information on eligibility see the Income Tax Credit Points portal.

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