General Rule
Any non-cash benefit provided by an employer to an employee is valued at its fair market value and added to the employee's taxable income. This includes: company-provided housing, meals, personal use of company equipment, gym memberships, and any other benefit with monetary value. The employer must report the benefit and withhold tax on the imputed value.
Common Benefits in Kind
| Benefit | Valuation Method | Approximate Monthly Value |
|---|---|---|
| Company apartment | Market rent value | ₪5,000–₪15,000 |
| Mobile phone | Fixed amount | ₪105 |
| Laptop for personal use | Depreciated value | ₪200–₪400 |
| Meals (subsidized cafeteria) | Excess over employee payment | Varies |
| Company car | % of list price | ₪3,000–₪7,000 |
Practical Note
Employers should ensure all benefits in kind are properly valued and reported. The ITA conducts payroll audits and may assess additional tax if benefits are undervalued or unreported. Include all benefits in the Form 106 annual certificate.
בסיס חוקי
- Section 2(2) – Employment income
- Income Tax Regulations – Benefit valuation
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.