Question:
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!
Answer:
Hello,
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.
Best wishes
