Income Tax Ordinance Amendment (Deduction of Hospitality Expenses for a Meeting Outside the Place of Business) Bill

What does the bill do?

The bill amends the Income Tax Ordinance to expand the expenses that can be deducted for income tax. Currently, a deduction of 80% of light refreshment expenses is allowed only when these expenses were incurred at the taxpayer's place of business; the bill permits the same deduction also for work meetings held outside the place of business, provided there are documents or receipts confirming the expenses. The deduction is limited to up to 4% of the taxpayer's annual turnover, and also to a total of up to NIS 12,000 a year. Light refreshments are defined as drinks, vegetables and fruit, pastries and cookies, and additional items to be set by the minister in regulations with the approval of the Finance Committee.