Form 101 — Filing Guide

What is Form 101, who needs to fill it out, field-by-field explanation, and FAQs about the form.

Form 101 is the standard employee tax declaration in Israel. Every worker must fill it out when starting a new job, and it determines how much income tax your employer deducts from your salary each month. Getting it right from the start can save you from overpaying tax all year long.

What Is Form 101?

Officially called the Employee Statement for Tax Purposes, Form 101 collects your personal details, tax credit points (Nekudot Zikuy), and information about other income sources. Your employer uses this form to calculate the correct monthly tax deduction. If you fill it out incorrectly or incompletely, you might pay more tax than necessary.

When Do You Need to Fill It Out?

You must complete Form 101 when you start a new job and again at the beginning of each calendar year. If your personal circumstances change during the year — marriage, having a child, completing a degree — you should update the form to receive the additional tax credit points you are entitled to.

Key Sections to Pay Attention To

The most important sections deal with your tax credit points. Israeli residents automatically receive 2.25 base points. Women receive an additional 0.5 points. New immigrants get extra points for up to 3.5 years. Parents of young children, people who completed a degree, and residents of qualifying peripheral areas all get additional credits. Each credit point reduces your annual tax bill by a set amount updated each year.

Common Mistakes to Avoid

Many employees rush through Form 101 and miss eligible credit points. Others forget to declare a second job, leading to under-deduction that creates a big tax bill at year-end. Take the time to fill it out carefully and ask your HR department or accountant if anything is unclear.

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Frequently asked

+−When do I need to fill out Form 101?

You must complete Form 101 when starting a new job and again at the beginning of each calendar year. Update it whenever your personal circumstances change — marriage, new child, degree completion, etc.

+−What are tax credit points on Form 101?

Tax credit points (Nekudot Zikuy) reduce your tax bill. Every Israeli resident gets 2.25 base points, with additional points for women, new immigrants, parents, degree holders, and residents of peripheral areas.

+−What happens if I fill out Form 101 incorrectly?

If you miss eligible credit points, you will overpay tax all year. If you forget to declare a second job, you will under-pay and face a tax bill at year-end. Take time to fill it out carefully or ask HR for help.

+−Can I update my Form 101 mid-year?

Yes, you can submit an updated Form 101 to your employer whenever your circumstances change. The payroll system will adjust your tax deductions going forward from the next pay cycle.

+−Do I need to attach supporting documents to Form 101?

In most cases yes — for example, a degree certificate for academic credit points, a birth certificate for child-related points, or an Oleh certificate for new immigrant points. Your employer's HR department will specify what they need.

+−Is Form 101 the same as tax coordination?

No. Form 101 declares your personal details and credit points to a single employer. Tax coordination (Teum Mas) is a separate process through the Tax Authority for people with multiple income sources to prevent double taxation at the highest rate.

+−What credit points should I not forget on Form 101?

Commonly missed points include those for academic degrees (earned within specific years of completion), children under 18, new immigrant status, military service credit, and residing in designated peripheral areas.