Income Tax Exemption


The National Insurance Institute holds Medical Boards for those who demand to be exempt from income tax.

Inquiries concerning income tax exemption must be addressed to the Tax Administration, and inquiries on Medical Boards to the National Insurance Institute.

The exemption is granted according to article 9(5)(a)(b) of the Income Tax Code.

Who is entitled to the exemption?

An exemption from income tax is given to a persons who have be determined a degree of disability of at least 90%, either permanently or for a minimum temporary period of 185 days.

Those who were determined a disability degree of 75% and above, will only be entitled to tax breaks on provident funds.

In case you have more than one impairment, percentages of disability are determined based on a weighted calculation - to the weighted disability degrees calculator, click here.

How to submit a claim?

In order to examine your right to an income tax exemption, you must provide the Income Tax with documents:

  • Request to Establish Disability Degree Form (Income Tax's Form 169A)
  • A payment voucher of the amount of NIS 659 - the voucher may be obtained at Assessment Offices or in a branch of the National Insurance Institute.
  • Medical documents for any impairment regarding which you wish to determine a disability degree;
  • Medical documents for all impairments for which you request the determination of a percentage of disability. You can use the tool providing a detailed list of medical documents that are advised to attach to a claim, by medical diagnosis.
  • Documents or approvals of disability degrees determined for you by other National Insurance Boards or Boards by other ministries (Ministry of Defense, for example)

Please note, these documents are to be submitted to the income tax assessor of your region of residence.

The income tax assessor will transfer all documents to the National Insurance Institute. After your file is received by the NII, you will be summoned to appear before a Medical Board.

Examination by a Medical Board for income tax purposes

Before you are summoned to the Board, a doctor who is an expert in the field will examine the case together with the Board secretary. Upon entering the Board room, you will be introduced to the Board members and asked to present an identifying card with a photograph.

You will then present your complaint to the doctor, and sign the document presenting your complaint and your agreement to be examined.

The doctor will ask you questions, and give you the appropriate physical examination if necessary.

At the end of the examination (after you leave the room), the doctor will sum up the findings and make his decision.

Upon making the decision for your case the Board will transfer your file, with all its documents, to the income tax assessor, which will send you a letter notifying you of the decision.

Appeal against the decision

You are able to challenge the Board's decision before the Medical Appeals Board, within 45 days since reception of the decision.

The appeal must be submitted to the income tax assessor, and involve a written appeal and a payment voucher of the amount of NIS 950 (voucher available at Assessment Offices or a NII branch).

Important information, both the Income Tax Authority and yourself are entitled to appeal against the Medical Board's decision.