Osek Zair is a simplified status intended for very small businesses in Israel. It is designed for self-employed individuals with a modest income and a straightforward business structure, and allows most interactions with the tax authorities to be handled online. The main advantage is simplified reporting, which removes the need to hire an accountant.
Eligibility
To qualify for Osek Zair status, your business must meet three core conditions. Annual income may not exceed 120,000 NIS, the business may not have any employees, and no single client may provide more than 50% of the business’s total revenue. You must already be registered as an Osek Patur or Osek Murshe, or be in the process of opening an Osek Patur file.
Not sure whether to switch over? Our article, Israel’s New Osek Zair Status: To Switch or Not to Switch, explains some of the considerations. However, this is a highly individual decision, dependent on multiple factors, and should be taken only after consulting with an accountant or tax advisor.
Registration steps
- Confirm that you meet the eligibility requirements. Before beginning the process, make sure your income level, client mix and staffing structure all comply with the legal thresholds for Osek Zair.
- Register for Mas Hachnasa’s (Israel Tax Authority) digital services and a personal account. This registration is required in order to submit applications and manage your file online. It can be completed easily on a computer or mobile phone. Information in Hebrew on how to register for Mas Hachnasa’s digital services can be found in this video.
- Complete the digital identity verification. Enter your Teudat Zehut number, answer identification questions, verify your mobile number and email address and choose how you would like to receive notifications from Mas Hachanasa.
- Set a permanent user code. This code is used for all future access and should not be shared.
- Submit the Osek Zair application online. File a request to change your file status to Osek Zair or, for new businesses, open an Osek Patur file online and declare that you meet all legal requirements and that your expected annual turnover is below 120,000 NIS.
- Receive confirmation. In most cases, approval is automatic and confirmation is issued immediately at the end of the process. Only exceptional cases are transferred for additional review by the tax office.
Digital access and security
Once registered, access to your account and all digital services is done using your Teudut Zehut number and permanent user code, together with a one-time verification code sent to your chosen contact method. This two-step authentication helps protect your privacy and secure your information.
