Home / Non-profit Organizations / Annual Fees for an Israeli Non-Profit Organization (Amuta)
This article addresses some information about annual fees including how to pay them, exemptions and consequences for failure to pay the Israeli non-profit organization’s annual fees.
Our law office have experience in a variety of fields, including Israeli non-profit organization law. This article is one in a long series discussing what you need to know about non-profit or charitable organizations (an amuta in singular and amutot in plural) in Israel. This series of posts will discuss the various rules for proper and legal management of non-profit organizations in Israel in order to better help you administer your Israeli non-profit organization.
For more information on the Israeli Corporations Authority which oversees Israeli non-profit organizations, see the government website. For more articles from an Israeli lawyer and legal advice for Israeli non-profit organizations related to the topic of this article, see our articles about financial statements, a certificate of proper management and issues related to banks, checks and credit cards.
All Israeli non-profit organizations are required to pay annual fees starting the year that follows their amuta registration. The annual fees must be paid in a postal bank or online. In the event that the Israeli non-profit organization pays its annual fee in a postal bank, it must provide the form stamped by the postal bank, which is included in the forms that the Israeli non-profit organization receives on a yearly basis.
An Israeli non-profit organization may be exempt from its annual fee if two Executive Board members declare the following conditions in the presence of a lawyer:
1) The turnover for the year is equal to or less than 300,000 NIS.
2) The Israeli non-profit organization is not involved in making any payments for work or services to an employee or subcontractor (except in cases where money was paid to someone to fulfill legal regulations on behalf of the Israeli non-profit organization).
If the Israeli non-profit organization fails to pay its annual fees, it will not receive a certificate of proper management. Additionally, if the Israeli non-profit organization does not submit the affidavit for exemption at the postal bank indicating that its financial activity is less than 300,000 NIS (if necessary), it will also fail to receive a certificate of proper management. Furthermore, a failure to pay necessary fees may result in the Registrar of Amutot taking action against the Israeli non-profit organization.
If you have any questions about your Israeli non-profit organization’s annual fees or anything else related to the laws and regulations of non-profits in Israel (whether an amuta or cheletz), call us today!
Advocate Joshua Pex specializes in Israeli non-profit law and would be happy to discuss the needs of your non-profit organization with you.
Attorney Michael Decker is a notary and partner at our law office. He has been a member of the Israeli Bar Association since 2008.
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