Stop Paying 47% Tax Unnecessarily
The Guide to Tax Coordination
Working more than one job? Freelancing through NETO while employed elsewhere? This guide will save you thousands of Shekels a year – in just 5 minutes.
What is “Teum Mas”?
“Teum Mas” (Tax Coordination) is an official certificate from the Tax Authority instructing secondary employers on exactly how much tax to deduct from your salary. Without this certificate, any employer not defined as your “Main Employer” is required by law to deduct the maximum tax rate of 47%. The process is done online, is valid for one tax year (Jan-Dec), and requires you to declare your employers (For NETO users: “Bareket IT L.T.D”).
Why is this Critical?
Income tax in Israel is progressive (tax brackets). The government system does not know in real-time how much you earn across all your jobs combined. Therefore, to ensure you don’t underpay, the law requires the secondary employer to deduct the maximum possible rate – 47% from the very first Shekel.
At NETO, we operate under the legal entity “Bareket IT L.T.D”. As far as the Tax Authority is concerned, we are your employer. If you have another job, you must inform the Tax Authority that we are one of your employers.
The Process: 1. Generate certificate at Tax Authority -> 2. Upload PDF to NETO Portal
Step-by-Step Guide: How to Apply & Upload
Log in to the Tax Authority Website
Go to the Online Tax Coordination System. You will need to identify using a credit card or your government account credentials.
Enter NETO’s Employer Details
Search for the employer using the following details:
- Company Name: Bareket IT L.T.D (ברקת אי.טי בע”מ)
- Deduction File No. (Tik Nikuim): 925435851
Upload the Certificate to NETO
Log in to your NETO Employee Portal:
Go to Personal Details (פרטים אישיים) tab > Select Form 101 (טופס 101) > Scroll down and upload the PDF file under the “Tax Coordination” (תיאום מס) field.
Interface Guide: Tab “Personal Details” -> Sub-menu “Form 101”
Important: National Insurance (Bituach Leumi)
To avoid double payments to National Insurance as well, verify if you need to coordinate this. Download Form 644, fill it out, and upload it in the same section in the NETO system.
NETO’s NII File Number: 9254385100
Frequently Asked Questions
How often do I need to renew my Tax Coordination?
Tax coordination is valid for one tax year only (January 1st to December 31st). You must generate a new certificate at the beginning of every year, even if your employers haven’t changed.
What happens if I don’t do it on time?
We will be legally required to deduct 47% tax from your salary. However, don’t worry – you can perform the coordination retroactively (within the same tax year). Upload the new certificate to NETO, and we will refund the excess tax deducted in your next payslip.
What are the employer details I need to enter?
Company Name: Bareket IT L.T.D
Deduction File (Tik Nikuim): 925435851
I am a pensioner and also work, do I need this?
Yes. A pension is considered taxable income. If you receive a pension and also a salary (or freelance income via NETO), you must coordinate tax between the pension payer and your employer.
Can I just ask NETO to do it for me?
Unfortunately, no. The Tax Authority requires the employee to perform this process personally as it involves private data regarding your other income sources which we are not privy to.
