Tax Simulators
2026 rates

Compensation arbitrage

Self-employed or company? Compare your purchasing power by status and salary / dividend split, then get a personalized AI recommendation.

Result before the director's compensation.

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I am an Oleh Hadash

2022+ schedule: 1 pt (year 1), 3 pts (months 13–30), 2 pts (months 31–42), 1 pt (months 43–54).

Olim 2026 reform (Smotrich law)

Full income-tax exemption on Israeli active income for new immigrants and returning veteran residents who arrived from 5 Nov 2025.

EUR → ILS rate : 3.400 indicative

Scenario

Total purchasing power · Company · optimized salary

Optimal
69,835
Effective levy rate : 41.8%₪237,438

Retirement savings

4,025

Capitalized for the future

Payslip

Monthly gross salary (payslip)€2,262
Monthly net salary€1,964
Annual gross salary€27,141
Annual net salary€23,569

Mandatory deductions

National Insurance (ביטוח לאומי)€109
Health tax (מס בריאות)€840
Income tax€318
Corporate tax (23%)€19,742

Additional income

Gross dividends (distributable)€66,093
Dividend flat tax (30%)€19,828
Net dividends€46,265

Future savings (capitalized)

Pension (6.5%)€1,764
Study fund (קרן השתלמות)€2,261

Compensation arbitrage

Above roughly €10,000/month of profit, a company taxed on profits with a moderate salary topped up by dividends usually maximizes purchasing power. The optimal salary secures your social rights and pension.

These simulations are indicative, based on 2026 rates, and do not constitute tax advice. Consult a BNG & CO expert for a personalized analysis.

Discuss my situation

Compare self-employed (ossek) vs company for a director in Israel: salary, dividends, contributions and overall tax. Then get an AI orientation to validate with a BNG & CO CPA.

How to arbitrage ossek vs company

  1. Enter turnover, expenses and target compensation.
  2. Compare salary / dividend / ossek scenarios.
  3. Read the recommendation and book a CPA session to secure the structure.

FAQ — Compensation arbitrage

When should I create a company instead of an ossek?
Often past a profit threshold, or to limit liability and structure partners. The exact tipping point depends on your file.
Does AI replace a CPA?
No. AI guides; the firm verifies assumptions, VAT, National Insurance and compliance.
Is VAT included?
Focus is director tax and contributions. For monthly VAT cash flow, also use the advance-payments simulator.
Can I mix salary and dividends?
Yes — often optimal. The tool visualizes the mix; the final decision remains personalized.