Changing employers or taking a career break during a single tax year is one of the single most frequent causes of tax overpayment for Israeli employees.

1. Why Tax Overpayment Occurs When Changing Jobs?

Israeli Income Tax is calculated on a cumulative annual basis assuming 100% annual tax bracket allocation over 12 continuous months of earnings. When an employee changes jobs or takes a break, monthly employer payroll software over-withholds tax due to 4 common scenarios:

  1. Unemployment Gaps Between Jobs: Months without income create unutilized lower tax brackets.
  2. Salary Fluctuations: Moving from a higher paying position to a lower paying role (or vice versa) without year-end tax coordination.
  3. Severance & Compensation Payouts: Miscalculated tax withholding on retirement grants and accumulated vacation payouts (Form 161).
  4. Simultaneous Dual Income Without Tax Coordination: Temporary overlap between old and new employer payrolls resulting in 47% max withholding (Form 100).

2. "Missing Form 106 from Past Employers?" โ€“ The Perfect Solution!

Many employees delay claiming tax refunds because they lost Form 106 annual tax certificates from former employers. Our firm accesses your digital records directly via Tax Authority systems to retrieve all missing Form 106 data automatically.

Claiming Your Refund: Our firm collects Form 106 from all employers and submits retroactive tax refund claims covering the past 6 tax years (+4% interest) to return your money.