Rules

Withholding tax

This page exists mostly to explain something VLDTION does not do. The withholding rate is not encoded in this build, because the regulation that sets it could not be retrieved from a primary source. And a tax rate taken from memory is worse than no rule at all.

What was established

The obligation to withhold comes from section 164 of the Income Tax Ordinance, with the regulations made under section 243.
The rate for payments for services or assets is set by תקנות מס הכנסה (ניכוי מתשלומים בעד שירותים או נכסים), התשל"ז-1977, published in קובץ התקנות תשל"ז at page 1385.
That regulation is live and has been amended. An amendment published in 2018 was retrieved and read from gov.il.
The rate that applies to a particular recipient is established through the Tax Authority's certificate services, and is not present in any accounting export VLDTION reads.

What was not established, and what follows

The operative text of the regulation. The rate itself: was not retrieved. The Tax Authority’s HTML pages refuse direct retrieval from the build environment, no published PDF stating the rate was found, and the official Reshumot page was not reachable. Secondary sources disagree with one another about the figure.

So nothing is encoded

VLDTION ships an empty, dated rate regime. Every payment carrying withholding is reported as insufficient data, with a note naming the research record. When a primary source is in hand, one entry, with its own effective dates and citation, turns this into a working rate check, and historical runs keep the regime they used.

What does ship

Rule	Assurance	What it does
RULE-WHT-001	Development	The rate check. Reports insufficient data for every payment carrying withholding, because no rate is encoded.
RULE-WHT-002	Verified	Withholding recorded on a document the uniform file structure reserves for receipts. The authority is a specification VLDTION has read in full: field 1224 is documented as בקבלה בלבד, אם נוכה.

RULE-WHT-002 is deliberately narrow. It is not a statement about tax law: it says a file contradicts the specification it claims to follow, which is exactly what its evidence shows.

Why this is the right answer

An accountant can work with “VLDTION cannot check this, here is why”. What they cannot work with is a rule that applies a plausible-looking rate to a client’s ledger and produces confident findings from it. The research record in the repository lists exactly what would close the gap: a retrievable Tax Authority publication of the rate, access to the Reshumot archive, or an implementation instruction, and what changes when it arrives.