Just because you 𝐂𝐀𝐍 put an expense on your Israeli company, doesn’t mean that you 𝐒𝐇𝐎𝐔𝐋𝐃.
shares
It’s a helpful reminder as we all plan for next year.
I’m specifically talking about food and cars.
🍔 𝐅𝐎𝐎𝐃🍩
Food is not a recognized business expense, with some notable exceptions, so plan accordingly.
(1) Regular office staple food items for the office are ok (think coffee, tea, suga, paper towels etc). But – and you’ll read this a few times in the post – you should speak to your tax consultant to receive relevant guidelines.
(2) Hosting relevant people from abroad is a recognized expense. Again, consult for guidelines. For example, some accountants have strong feelings about going out for alcoholic drinks.
(3) “Gibbush” or staff retreats can be recognized BUT there are a number of conditions that need to be followed. Again, consult.
(4) Team meetings are harder to be recognized, but again, under the right conditions there might be a way. Maybe.
🍔 𝐅𝐎𝐎𝐃🍩
Food is not a recognized business expense, with some notable exceptions, so plan accordingly.
(1) Regular office staple food items for the office are ok (think coffee, tea, suga, paper towels etc). But – and you’ll read this a few times in the post – you should speak to your tax consultant to receive relevant guidelines.
(2) Hosting relevant people from abroad is a recognized expense. Again, consult for guidelines. For example, some accountants have strong feelings about going out for alcoholic drinks.
(3) “Gibbush” or staff retreats can be recognized BUT there are a number of conditions that need to be followed. Again, consult.
(4) Team meetings are harder to be recognized, but again, under the right conditions there might be a way. Maybe.
✏️ FINAL NOTES 🖋️
Despite what I said above, you can put your car or any food expense on the business.
There just might not be tax incentives for you to do so, meaning that it might cost you more than if you would have paid for these personally.
This is especially true if you fully own your company (or there are only a few partners) as your business finances and your personal finances are really two sides of the same coin. At the end of the day, both are an expression of your personal finances.
As you prepare for the year ahead, don’t assume anything when it relates to these two expense categories.
Run the numbers with your trusted financial partners so you can make the best educated decision.
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It’s complicated and time consuming to keep track of the Israel Tax Authority’s best practices.
Our firm works with our clients to understand the operational, financial, and tax implications of their decisions.
Whether you’re a single owner company or working with investors, we ensure that all interested parties understand the full ramifications of your business.
𝐅𝐨𝐠𝐞𝐥𝐂𝐅𝐎: 𝐎𝐮𝐭𝐬𝐨𝐮𝐫𝐜𝐞𝐝 𝐟𝐥𝐞𝐱𝐢𝐛𝐢𝐥𝐢𝐭𝐲; 𝐈𝐧-𝐡𝐨𝐮𝐬𝐞 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡.
