Explanation
A restricted stock unit (RSU) is an award of stock shares, typically provided as a form of employee compensation. Many tech companies in Israel utilize RSUs to enhance the total compensation of their employees.
The purpose of this website is to assist you in calculating the net gain you can achieve from your available RSUs, or a portion thereof. This net gain is applicable in Israel and is determined according to section 102 of the income tax ordinance in Israel.
We strive to gather minimal details from you (only 4 fields) while still providing a very accurate calculation of your net gain. These 4 fields are as follows (Rest assured, none of this information is saved anywhere beyond the calculation of your net gain):
Stock symbol - You can find your stock symbol by searching for your company's stock on Google (e.g., "NVIDIA Stock"). This search will yield "NVDA" which should be inserted into this field.
Number of shares - The number of shares you intend to sell. You can find the number of shares you hold in each RSU plan on your trustee's website.
Grant date - The grant date for each RSU plan can be found on your trustee's website.
Average monthly salary - This refers to your gross monthly salary. If your salary changed this year, calculate it by dividing the income by the elapsed months. If you have additional income components that could affect tax rates this year, add them to your gross yearly salary and divide by the number of months elapsed.
These fields are not mandatory and can be used once checked:
Set stock price - Enter your preferred stock price, or the live value will be used for calculation.
Previous workplace - Check if you no longer work there. This salary will determine the Bituah Leumi tax rate.
Set dollar value - Specify the USD-ILS conversion rate. If not specified, the calculator will use the live dollar rate.
Extra capital gain - Check if you have capital gain or loss from previous RSU or other investment sales this year.
Multiple Plans:
If you have more than one RSU plan, whether from the same workplace or multiple workplaces, you can include up to three plans to calculate the combined net gain from all sales. The results will summarize the total gain from selling these plans. Please note that this calculation considers the sale of all three plans together.
The results displayed are as follows:
1$ - Dollar to Shekel rate (live or user's own dollar rate).
Stock price - The current live stock price (or your own stock price) in US dollars.
Gross - The RSU sell volume in ILS, before tax deductions.
Tax deduction - This is the average tax deduction for this RSU sell (gross-net/gross).
Net to bank - The amount of money (in Israeli shekels) that will be wired to your bank account if you successfully sell today at the displayed stock price.
Net to salary / Net tax refund - The additional amount in ILS to be added to your salary next month depends on whether your employer is the same as the one to which these shares belong. If so, this transfer will occur next month. Otherwise, it will be processed after the end of the year in which you sold those RSUs. You'll need to request Form 106 from the employer who holds the RSUs and provide it to the tax authorities; they'll deposit this amount into your bank account.
Total net - Net to bank + Net to salary.
The fluctuating exchange rate between the US dollar and Israeli shekels is currently dictated by the real-time dollar-to-shekel rate. It's important to note that after selling your stocks, your trustee will establish a rate slightly distinct from the live one, which will consequently alter your Total Net by a small margin.
We recommend using this calculator when you intend to sell RSUs, rather than for hypothetical calculations, as it utilizes today's stock price, dollar-to-shekel rate and average salary, which may change each workday.