Deductions And Required Supporting Documents, Individual Income Tax Return

Tags: Deductions, Supporting Documents, Income Tax, Return, individual

These deductions are current as of tax year 2014.

Tertiary Education Expenses – limited to $60,000

  1. Acceptance Letter
  2. Proof of Payment
  3. Statement of Expenses.

Only fees/payments made to a foreign Tertiary Institution will be allowed as an expense.

First Time Home Owner – limited to $18,000

  1. Where the property is constructed or purchased a copy of the Completion Certificate or Deed of Conveyance respectively must be provided.
  2. The individual must provide evidence of proof of ownership
  3. Certificate of Assessment.
  4. The individual must satisfy the B.I.R. that the house to be used as a residence is a first time acquisition. The individual must provide an original statement from a financial institution/affidavit confirming first time acquisition and date property was acquired.

Property must have been acquired on or after January 1, 2011.

Deed of Covenant– limited to 15% of total income

  1. Proof of Payments.

Contributions/Premiums paid to Deferred Annuity/Tax Savings/Pension Fund Plans and 70% NIS contributions - Limited to $30,000

  1. Original document from Insurance Company/Financial Institution.

Alimony or Maintenance – Payments made in accordance with a court order

  1. Copy of Court Order and Proof of Payment.

The Personal Allowance - $60,000

Travelling Expenses

  1. Statement of expenses incurred (limited to 2/3 of expenses).
  2. Letter from employer certifying your requirement to travel to your official duties, Copy of approval of dispensation where this is granted by Board of Inland Revenue.

Conversion to Guest House

  1. Approval from Ministry of Tourism.
  2. Detailed Statement of Expenditure.
  3. Completion Certificate.

The Tax Credit for a Venture Capital Investment – 25% of the investment

  1. Copy of Tax Credit Certificate.

CNG Kit and Cylinder Tax Credit

  1. Provide receipt of purchase and installation cost of CNG Kit and Cylinder.
  2. Certified copy of ownership of vehicle.

Solar Water Heating Equipment Tax Credit

  1. Provide receipt of the cost of the Solar Water Heating System.