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, except where otherwise stated.

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 $25,000 as of 01/01/2015

  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.
  2. Copy of the Deed of Covenant.

Contributions/Premiums paid to Deferred Annuity/Tax Savings/Pension Fund Plans and 70% NIS contributions - limited to $50,000 as of 01/01/2015

  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.
  2. Affidavit where claim is made in respect of a common law relationship

The Personal Allowance - $72,000 as of 01/01/2016

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 - 30% of face value of bonds purchased

  1. Copy of Tax Credit Certificate.

Purchase of National Tax Free Savings Bonds with maturity of 5, 7, or 10 years - 25% of the face value of bonds purchased, limited to $5,000

  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.