Question regarding taxation for my Marie Curie ESR in Israel
Dear Israeli chapter members,
I wonder if someone can help. I recently won a Marie Curie as PhD Student in Israel, where I have just moved to. As stated in the title of this post, I am really excited to start my project, but I still do not understand clearly how the University is calculating the net of my salary.
In this website someone of you already wrote in the past that it depends on the country of citizenship: I am from Italy, and since I registered officially as Italian abroad, according to our system I should not have to pay taxes back home, but only in Israel.
My question is regarding the fact that the University, in order to calculate the net from the gross amount, does not consider the total as gross, but they subtract ~5k NIS from what I think is supposed to be the gross, and there is no way for me to understand why.
Am I wrong? What I am missing? Living+mobility allowances (corrected by the country coefficient) is not considered our gross salary?
Thank you in advance for any help you might give.
Best,
Carlotta
3 Comments
Thank you Aleksandra, I will see if such agreement exists with Italy as well.
here goes
1. you can do (tium mas in Hebrew) tax assessment in Israel to ensure that the sum will not need taxes as it is a scholarship that is not linked to your teaching load.
2. I believe your university is deducting overhead (tkura in Hebrew) - and if that is the case you need to verify that they are aloud to do it based on MC regulations. Usually these regulations are fixed and cannot be negotiated
feel free to contact me
boaz.ben.david@idc.ac.il
MCAA Support
Sharon Sznitman
This is correct. They need to take that money to cover costs of your employment from the employer side. Basically fellowships covers taxes and pension contribution etc that are normally paid by employer. These are different taxes than these that you pay.
You may be able to avoid paying your part of taxes though. Many countries have taxiation agreements with Israel and on Expert working visa you don't have pay taxes at least for some period of time (for me, Polish citizen, it was 2 years).