FAQ
Common questions about RSU taxation in Israel and how this calculator estimates net proceeds.
Section 102 vs Non-102
Section 102 plans with a trustee typically allow capital gains treatment at sale after the mandatory holding period. Non-102 plans are taxed as income both at vest and sale.
Why is tax calculated at vesting?
Israeli tax law treats vesting as a taxable event. The fair market value at vest becomes the cost basis and is taxed as employment income.
What about the 2-year trustee holding period?
For Section 102 trustee plans, holding the shares for at least two years is required for capital gains treatment. Selling earlier can shift the gain to income tax treatment.
Why do actual withholdings differ?
Employers often withhold tax conservatively. Your actual liability depends on total income, credits, and deductions, which are not modeled here.