What problem does it solve? Israeli company owners (baalei shlita) must choose between salary, dividends, shareholder loans, and management fees when extracting profits, and each method carries different tax rates, Bituach Leumi implications, and compliance risks. This Skill models the total tax burden across all four methods using verified 2026 rates, preventing costly mistakes like using the wrong dividend rate or missing Section 3(tet1) reclassification deadlines. ## Core Features & Use Cases - Side-by-Side Extraction Comparison: Calculates effective tax rates for salary (10%-50% brackets plus NI), dividends (46.1% combined for controlling shareholders), shareholder loans (6.53% Section 3(tet) deemed interest), and management fees (with 18% VAT), then recommends the optimal mix by extraction size. - Compliance Gate Checks: Applies the Section 62A personal-services look-through test, tracks Section 3(tet1) end-of-following-year reclassification deadlines, and flags trapped-profits 2% surtax exposure under Amendment 277. - Bundled Calculator and References: Ships a Python comparison script plus reference files covering 2026 tax brackets, NI ceilings, credit points, and deemed-interest rules, with an evidence.json tracing every figure to official sources. - Use Case: A shareholder needs 500,000 NIS to pay a tax assessment. The Skill checks Section 62A applicability, compares a short-term loan bridge against an immediate dividend, and outputs the net-after-tax result of each path. ## Quick Start Ask the assistant to compare salary versus dividend versus a shareholder loan for extracting a specific amount from your Israeli company, providing your ownership percentage and current salary.
