Uri and Anna Banai Won: This Is the Amount They Will Pay in Income Tax
After winning the grand finale of Power Couple and taking home a cash prize of hundreds of thousands of shekels, the couple will have to part with a significant portion of the amount due to Israel's tax laws.
Uri and Anna Banai were crowned winners of the season on the reality show "Power Couple" following a tense and emotional finale. The couple, who demonstrated a stable relationship and an impressive ability to cope with complex tasks throughout the season, managed to overcome the other contestants to take first place. Their victory earned them the coveted title and a cash prize of 399,000 NIS, representing the amount they accumulated during the game, in addition to their participation fee.
Alongside the celebrations, the high cash prize brings with it a reckoning with the tax authorities. According to Israel's income tax laws, winnings from lotteries, prizes, and reality shows are subject to a special tax. As of today, there is a tax exemption on winnings up to approximately 33,840 NIS, and beyond this amount, a progressive tax applies up to a maximum rate of 38%.
In calculating the tax for a prize of 399,000 NIS, the amount up to the exemption threshold is tax-free. On the balance, up to the threshold for full taxation (about 67,680 NIS), a reduced tax is applied, while the remainder of the prize is taxed at the maximum rate of 38%. After accounting for exemptions and tax brackets, Uri and Anna are expected to pay the Income Tax Authority a total of about 135,000 to 140,000 NIS.
Ultimately, after the withholding tax, which is usually carried out directly by the production team, the winning couple will be left with a net amount of about 260,000 NIS. This remains a significant and respectable sum, representing a rewarding end to the intense experience they underwent in front of the cameras.
