Offsetting Profits and 4 Additional Tax Benefits Worth Using This Year

Tax experts recommend five critical moves to reduce tax payments by the end of 2026: realizing losses in the capital market, splitting realizations to avoid the surtax, distributing dividends in companies, completing pension savings deposits, and documenting crypto transactions.

With less than two months left until the end of the 2026 tax year, tax experts recommend five critical moves for investors and business owners to reduce tax payments. CPA Avi Neuman from PwC Israel recommends realizing depreciated securities by December 31 to offset losses against capital gains, while paying attention to differences between Israeli and foreign securities. CPA Yoram Shifer from Ziv, Shifer & Co. suggests splitting large profit realizations between December and January to avoid exceeding the surtax threshold (721,560 NIS). Following the trapped profits reform, it is advisable to consider distributing dividends from a private company before year-end, comparing the dividend tax cost (6%) against the annual tax addition (2%). Additionally, independent deposits to training funds and pensions should be completed by year-end to utilize tax benefits, and crypto transaction history should be documented for loss offsetting and reporting to the tax authority.