Working from home, a widespread phenomenon in Israel.
It's no secret that in order to make ends meet in Israel, both husband and wife are obliged to work, and even to take on several jobs each.
Except that in Israel, going out to work is not easy. Schools finish early, and it's never easy to get organized and manage your career.
Many men and women have decided to work from home.ALSO READ: What expenses are recognized in Israel?
https://www.youtube.com/watch?v=4ZG9vsJ33qM&t=287s&ab_channel=Dray%26Dray
Working from home in Israel? What careers are open to you?
Generally speaking, people who choose to work from home have an entrepreneurial profile, and unfailing self-discipline.
Among the firm's many customers who work from home, we mainly count IT specialists, programmers, web marketers, doctors or medical specialists, not forgetting of course the women who look after children at home, better known as "Metapelet - מטפלת".
"I work from home, what expenses can I recognize?"
Once you've chosen the status that best suits your professional activity, Now is the time to think about how to reduce your annual profit for tax purposes.
To do this, you need to be able to provide proof of recognized expenses, which will enable you to reduce your profit, and therefore your tax liability to Mas Ahnassa (Tax Office) & Bituah Léoumi (Social Security).ALSO READ: Choose your status in Israel
Here is a summary of the expenses recognized if you work from home:
- Property taxes (arnona).
- Your apartment's water bills.
- Electricity bills for your apartment.
- Your cell phone subscription.
- Your internet subscription for your home.
- The cost of cleaning your apartment.
- Purchase of equipment or furniture to help you in your daily life.
The expenses listed above will be recognized in proportion to the number of rooms you have in your home. So if you live in a 4-room apartment, we can recognize 1/4 of the expenses for you.
Recognizing rent as a business expense
"Can I recognize the amount of rent as an expense?"
Theoretically, there's no problem recognizing the amount of your rent as an expense, using the same method proportional to the number of rooms, as explained above.
However, the difference between theory and practice is not in your favor.
Unlike a traditional workspace rental, where you usually receive an invoice from your landlord, when you work from home, it's rare to receive an invoice from your landlord for the amount of rent you pay him every month.
So, to be able to recognize a proportional part of your rent, you'll need to request an invoice from your landlord.
If your landlord doesn't want the hassle of providing you with an invoice, you can offer to deduct at source the tax amounts he has to pay to the Israeli government, and pay them to them on his behalf.
However, they are unlikely to agree to reduce the rent they receive each month, which is why it is very rare to be able to deduct part of your rent from your annual profit.