Among the various financial and tax documents a worker receives from their employer every year is something called a Tofes 106, an annual summary of your income and all tax payments and deductions made in the previous calendar year.

Your employer is required to give you the previous year’s 106 form by the end of March each year. The Tofes 106 is most commonly used when filing for a tax refund or for proving your income for things like Arnona - ארנונה - Municipal tax discounts.

The form is divided into two columns and is color-coded here to make it easier to follow. 

Brown Section - Employee and Employer Information

This section indicates which employer and which employee this form is talking about. It has both your names, addresses, and identification numbers as well as your department and whether you are working full or part time.

Yellow Section - Hachnasat Avoda - הכנסת עבודה - Payments from your employer

This is a summary of your taxable and non-taxable income from your employer including your salary, value of benefits like company car, gifts, 10bis or Cibus (pre-paid food allowances), company meals, and any other benefits.

Blue Section - Employer’s deposits into your Pension and if relevant, Keren Hishtalmut accounts - קופות גמל

The section begins with your Sachar Mevutach – שכר מבוטח ששילם המעסיק – total gross income, followed by the Hafrashat Ma’asik LeKitzba – הפרשת מעסיק לקיצבה – your employer’s contributions to your pension plan. The value of this should be 6.5% of your gross salary.

Next, it shows the Hafrashat HaMa’avid LeKa”Hal – הפרשת המעביד לקה”ל – your employer’s contributions toward your Keren Hishtalmut, if you have one. This should be 7.5% of your gross salary.

After that, it shows your employer’s contributions toward your Polisat Ovdan Kosher Avoda – פוליסת אובדן כושר עבודה – Workers Disability Insurance policy.

The next entry is Hafrashat HaMa’avid LePitzuyim – הפרשת המעביד לפיצויים – Employer’s contributions to severance pay.This should be 8.33% of your gross salary. If you have Seif 14a in your employment contract, you are entitled to receive severance pay whether you are fired or even if you resign.

It is recommended not to withdraw your Pitzuim if you can financially afford not to, as the principal will continue to earn interest.

Green Section - Pitzuyei Prisha - פיצויי פרישה - Retirement Pay & Kitzbaot - קצבאות - Stipends

The first section shows any severance pay you received from your employer that year. It will only be filled in if both of the following conditions are true:
You retired or were laid off/fired from this company this year,
you do not have Seif 14a in your employment contract (see above).

The second section refers to any other stipends you may have received to complement your severance pay. For most people, this is also zero.

Red Section - Ptorim Ve’Zikuyim - פטורים וזיכויים - Exemptions and Credits

This section sums up all of the tax credits you are entitled to. The sample 106 form above belongs to a woman with two small children. The number above shows her tax credits for a year, but each person’s 106 varies.

This section can also include tax refunds received for donating to charity, in the event that your employer takes off the tax refund for you. You might also be entitled to additional tax credits if you live in one of a list of peripheral towns.

Purple Section - Nikuyim - ניכויים - Deductions

Here you will see the deductions that came off of your salary including income tax, Bituach Leumi, health tax, your pension, and any union fees you might have paid.

Pink Section - Work Attendance

This shows the months that you worked that year and is signed off by your employer.

Please Note

The Tofes 106 is one of those important documents you should keep or back up for your records.

You can find your 106 forms from the past six years here on the Tax Authority’s website.