How does
it work?
At Hybrid, we advocate for a streamlined and efficient approach to withholding tax procedures, specifically in the seamless generation of Form 867. Leveraging our company's unique authorization from the Tax Authority and the cutting-edge software we have developed, we ensure a hassle-free experience for our clients.
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Our software, meticulously designed to adhere to legal provisions, proficiently calculates the required tax deductions from interest income, dividends, and capital gains generated by clients in foreign financial institutions engaged in operations related to deposits, savings plans, and securities trading.
The comprehensive service we provide extends beyond mere calculation. With the client's authorization, expressed through a simple agreement, we take charge of the entire process, including the withholding from their account and the subsequent transfer of the relevant taxes. In essence, the client's involvement is minimal, requiring only the signing of an agreement and granting permission, leaving the rest in the capable hands of our team at [Your Company Name].
Experience the ease of tax management with Hybrid, where we handle the intricacies, allowing our clients to focus on their financial goals.
About the process
Agreement
Upon choosing our services, the initial step involves signing a detailed engagement agreement that precisely outlines the contractual terms and services to be provided. It is imperative for clients to thoroughly review this agreement, ensuring clarity and mutual understanding before signing.
Within this agreement, clients are required to grant our company authorization to calculate and execute withholding tax on a monthly basis, with the calculated amount subsequently transferred to the relevant tax authorities. This process applies to both newly established accounts, where a comprehensive agreement is required during the account setup, and existing accounts, where clients must sign an authorization for tax calculations and deductions from the start of the calendar tax year. Prompt action is emphasized for seamless operations, encouraging clients to sign the engagement agreement during the account establishment phase for new accounts and initiate the authorization process promptly for existing accounts.
Access
In order for this action on behalf of our company to be carried out in practice and on an ongoing basis, you must give our company permission to operate on your account in the foreign financial institutions for the purpose of calculating and deducting the tax as well as obtaining permission to transfer the tax to the Israel Tax Authority through our company. The process is simple and secure.
Calculation
We have at our disposal an advanced computerized system connected directly to your investment account. The system collects relevant data on your activity in the capital market every day and calculates the amount of tax that must be deducted from your profits in accordance with the provisions of the law.
Monthly Update
Once a month our company will update you via WhatsApp and/or email about the amount of tax that should be deducted from your account that month. This way you can know in advance exactly how much money is expected to be deducted from your account and prepare accordingly.
Tax
Witholding
Once a month, our company will deduct the actual tax from your account and take care to transfer it to the Israel Tax Authority through the company's deductions file and in accordance with the provisions of the law. The deduction is made in a secure and professional manner according to all the rules.
It is important to note that the customer is responsible for leaving sufficient funds in his account for the purpose of tax deduction, as mentioned.
867
Form
At the end of each calendar year, Hybrid will issue Form 867 for you in accordance with the provisions of the Income Tax Ordinance and the provisions of the law.