Two certificates, two different questions
A customer asks for an ishur nihul sfarim and an ishur nikui mas bamakor before paying you. These are separate certificates. Bookkeeping approval does not set the withholding rate, and a withholding exemption does not exempt the income from income tax. Check each document separately.
| Certificate | Purpose | What it does not establish |
|---|---|---|
| Bookkeeping compliance — ishur nihul sfarim | Shows the certificate status under Israel’s Public Bodies Transactions Law concerning books and reporting. | It does not set a withholding rate or replace keeping the required records. |
| Withholding tax — ishur nikui mas bamakor | Shows an exemption or rate for the payment categories and validity period specified. | It does not determine final annual income tax or necessarily cover every payment category. |
How to check and obtain copies — step by step
- Open the official information service. Check and print certificates at the Israel Tax Authority ↗
The service is free. Do not enter a tax-file number on our website. - Identify the correct business. Enter the appropriate file number in the official system as instructed, then check the business name and number returned.
- Read both certificates. Check dates, payment category, rate and restrictions. A filename or an old copy is not enough.
- Keep a record and update the payer. The system supports printing. A payer required to withhold should verify the current online status rather than rely only on an earlier supplier copy.
Example: a NIS 5,000 bill, but a smaller bank transfer
Fictional example: a service provider registered as an osek patur for Israeli VAT is owed NIS 5,000, with no VAT. Assume the payer must withhold, a valid certificate specifies 5% for this payment category, and the checked withholding base is the full NIS 5,000. The rate is illustrative.
| Item | Calculation | Amount |
|---|---|---|
| Amount before withholding | Full payment in this example | NIS 5,000 |
| Tax withheld | 5,000 × 5% | NIS 250 |
| Bank transfer | 5,000 − 250 | NIS 4,750 |
Do not reduce the revenue to NIS 4,750 merely because that is what reached the bank, or treat NIS 250 as a customer discount. Collect the transaction document, bank evidence and withholding breakdown, then reconcile them with the payer’s annual certificate. Crediting withheld tax depends on documentation and reporting rules; a refund is not guaranteed.
No certificate, or a rate that seems too high?
The information screen shows the existing position; it is not an application to change it. Clarify the reason with the assessing office or your representative. A reduction request needs reasons and supporting evidence. Official exemption or reduction application — Form 2542 ↗
Submitting a request does not authorise you to reduce withholding yourself. If there is no valid certificate, do not assume one universal rate applies: the payer’s obligation and payment category need individual review.
Three common questions
Does an osek patur need to check withholding?
VAT exemption is separate from income-tax withholding. Check whether the payer must withhold and which certificate applies to the payment.
Is one certificate enough for the whole year?
Read its own dates and restrictions. The 2026 circular describes annual certificates running to 31 March 2027, but limited certificates and changes during the year are possible. That general date does not extend an expired certificate.
How is the rate certificate different from the annual certificate?
The rate certificate concerns withholding on a payment. The payer’s annual Form 806/857 records actual payments and deductions for a tax year. Official annual certificate service ↗
What should you prepare for a discussion?
Explain which certificate is missing, the payment category, planned payment date and discrepancy. Share documents and file numbers through a channel agreed with the firm. Monthly document checklist ↗ · Tax advances are a separate mechanism — read the guide ↗
Official sources and review date
- Certificate information and checking ↗
- 2026 Tax Authority circular — sections 2, 3, 4 and 10 ↗
- Exemption or reduction request, Form 2542 ↗
- Annual certificate, Form 806 ↗
Checked 28 October 2026. The examples are fictional and arithmetic was checked. Recheck in January 2027, before publication and whenever official instructions change; there is no automatic update.