The landmark Micro Dealer (Osek Zeir) reform allows small business owners with turnover under 120,000 ILS to deduct a flat 30% expense allowance without collecting individual expense receipts.

Business Status Comparison Table

Feature Osek Zeir (Micro) Osek Patur (Exempt) Osek Murshe (Licensed)
Turnover Ceiling Up to 120,000 ILS Up to 120,000 ILS Unlimited Turnover
Expense Recognition Flat 30% Standard Expense Deduction Actual Documented Expenses Actual Documented Expenses
Receipt Documentation Exempt from expense receipts Must keep all receipts Must keep all receipts
VAT Collection Exempt from VAT Exempt from VAT Must Collect 18% VAT

Contact Bernstein & Co. to determine whether transitioning to Micro Dealer status optimizes your net income.