What expenses are deductible in Israel?
Deductible expenses in Israel.
We have compiled a detailed summary of all the different fees that can be recognized in Israel.
Why is it important to recognize charges?
As a reminder, passing on expenses allows you to reduce your taxable profit.
As a result, you can pay less tax and social security contributions on your profits as a company in Israel.
Deductible expenses in Israel: we explain in video
Deductible expenses in Israel : Online simulation
You can run your tax simulations on our following link to check what your annual tax rate will be.ONLINE SIMULATOR : TAXES IN ISRAEL
Expenses are deductible only when they are recognized for tax purposes.
Passing on "personal" expenses can result in heavy fines and penalties.
In a nutshell:
Using deductible expenses in Israel can significantly reduce the tax you pay on your taxable income.
Expenses are recognized according to a scale published by the Israeli tax authorities.
Your questions - our advice
Yes, tax losses can be carried forward from year to year, with no time limit.
Yes, you will see a line "החזר מע "מ" on your bank account every 2 months, which corresponds to the refund of VAT declared.
No, there is no VAT charged on a trip.
No, VAT can only be reclaimed when you are subject to VAT. (Ossek Mourché or Hevra Baam).
You can deduct VAT back 6 months.
Sometimes a special request can be made to the VAT office to retrieve an invoice up to 5 years old!
No, the same expenses can be recognized regardless of the structure. As long as they are "professional" and not "personal" expenses.