Is a withholding tax being deducted?

In accordance to the Israeli Tax Authority instructions, Plus500 deducts tax at a rate of 25% from the amount of profits in the trading account, which is transferred to the Israeli Tax Authority.

In case you have encountered with losses in the current tax year (assuming you have had taxable profits), we will credit your account with the tax credit for the aforementioned loss (up to the tax deduction amount which was deducted against your profits in the current tax year).

In order to receive a certificate of withholding tax (867A) for a relevant tax year, please contact us on the website and inform us that you wish to receive this form.

For your convenience, please find the following example:

A customer profited a 400 NIS.

The tax that will be transferred to the tax authorities is 400 * 25% = 100 NIS.

During the same tax year, the customer had losses on the amount of 100 NIS.

Accordingly, he is entitled to receive a tax refund according to the following calculation:

Total profits in the tax year: 400 - 100 = 300
Total tax to be deducted in that tax year: 300 * 25% = 75
Total tax actually deducted: 100
Total customer credit: 100 - 75 = 25.