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.
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
Retirement savings
€4,025Capitalized for the future
Payslip
Mandatory deductions
Additional income
Future savings (capitalized)
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.
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
- Enter turnover, expenses and target compensation.
- Compare salary / dividend / ossek scenarios.
- 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.