Do I need an Israeli accountant (CPA) to handle my company's annual compliance?

For all practical purposes, yes. While there is no absolute legal requirement to appoint a CPA for small private companies, the corporate tax return must be signed by a licensed Israeli CPA, and the VAT and payroll filings require specialist knowledge. Additionally, companies with annual turnover above certain thresholds must attach audited financial statements to their tax return. Trying to handle Israeli company compliance without a local accountant is strongly inadvisable, particularly for foreign owners unfamiliar with the system.