Opening a deductions file for the employment of workers who are foreign residents


Registration of an employee who is a foreign resident should done in the following manner:

  • If you have begun to employ in your business a worker who is a foreign resident – You must open a deductions file with the income tax authorities within two weeks of your hiring this worker and you must indicate that you are employing a worker who is a foreign resident.
    (If the worker is a resident of the Palestinian Authority or a resident of Judea and Samaria and is employed in the “area,” you must indicate this fact.)

    The NII will automatically receive both information about the opening of the file and the file number from the income tax authorities, and will open a deductions file for you as a new employer.
  • If you have been employing a worker who is an Israeli resident (and have reported on this worker in a deductions file opened with the NII) and if you have begun to employ a worker who is a foreign resident – You must notify in writing to the NII local branch where the deductions file for your business is being administered that you have begun employing a foreign resident.
    (If the worker is a resident of the Palestinian Authority or a resident of Judea and Samaria and is employed in the “area,” you must indicate this fact.)

When the NII receives the information about your employment of a foreign resident, the NII will send you the following by regular mail:
- Notification that a “reporting contract” on the employment of a foreign resident has been opened
- A voucher book containing report forms regarding the employment of a foreign resident; the forms will be suited to the category to which that employee belongs.

If you are a new employer, you will receive, in addition to the above, the following:
- Notification regarding the opening of your file, the number of employees you have reported and the insurance rates you must pay for them
- A questionnaire that asks for additional information and which you must fill out and return to the NII