The government of Israel approved Sunday, at its weekly meeting, the Minister of Finance Bezalel Smotrich’s bill to grant an additional tax credit to parents of children aged 6 to 17 and to compare the labor allowance of working fathers to that of working mothers.
The bill will now be submitted to the Knesset for approval and will enter into force at the beginning of 2024, subject to the Knesset’s approval and the approval of the state budget for the years 2023 and 2024.
The meaning of the proposal is that men will be entitled to 1 tax credit point and women will be entitled to 2 tax credit points for each child in the said age range. The value of a tax credit point in 2023 is 2,820 Shekels ($770) per year and the meaning of each point is a reduction of 235 Shekels ($65) from the monthly tax liability of those entitled to it.
Today, a woman is entitled to one tax credit point for each child in the aforementioned age range. In addition, in 2022 fathers and mothers were entitled to one additional tax credit point for each child between the ages of 6 and 12.
In addition, the government approved the increase of the labor allowance for fathers. Currently, working or self-employed mothers are entitled to a work grant that is 50% greater than the work grant given to working or self-employed fathers. According to the approved proposal, the work grant for fathers will be compared to that of mothers from 2023 onwards.