Hi, I’m an Australian lawyer who lives in Israel. I’m set up as a sole business (אצמי) in Israel and I invoice my firm in Australia every month for the work that I do. Every year I have to pay the renewal fee for my practicing certificate and my annual premium for professional inmenity insurance in Australia. Some years I pay out of my own pocket and some years the firm in Australia reimburses me for the expense. This year I paid it out of my own pocket and then the firm offered to reimburse me for the expense. My question is – can I claim the expense as a tax deudction when I lodge my Israeli tax return? On the one hand I did pay for it myself and it is a legitimate business expense. On the other hand, the cost was reimbursed.
Thank you and Shana Tova!
If the cost of the expense was reimbursed, either it isn’t an expense or the money received is considered income. Regardless, it would be something that should be reported.