The 'Travel-related Odfot' (i.e., עודפות) report allows authorized Mesh users to generate a comprehensive summary of expenses categorized by type for trips undertaken within a specified timeframe. This data helps organizations produce the 'Odfot' paperwork that must be submitted yearly to comply with Israeli tax authority regulations.
Follow the steps below to issue an 'Odfot' report:
1. Log into the Mesh platform as an Admin, Pro, or Travel Manager.
2. Navigate to the Travel page and click the Trips link.
3. Click the Export icon.
4. Click the 'Issue Odfot report' link.
5. Enter the From and To dates and click on the Download button.
6. Search for the .xlsx file in your downloads folder and click to open. The file breaks down the expense per trip based on the spend categories. The report includes a column named ‘Odfut (ILS)’ with relevant expenses and a sum representing the total amount to be reported to the Israeli Tax Authority.
Frequently Asked Questions
ⓘ When will this functionality be available?
The option to issue an 'Odfot' report has been available as GA since Sept 15th, 2024.
ⓘ I am a Mesh Admin but do not have the 'Odfot' functionality. How can I enable it?
Contact our team at support@meshpayments.com.
ⓘ What is ‘Odfot’?
The Israeli tax authority allows employees of companies to benefit from certain expenses. These expenses fall into different categories: ‘general’ (e.g., car allowance, presents, clothing, phone) and ‘travel’ (e.g., per diem, car rentals, accommodation, and flights). These expenses are capped, and any amount that exceeds the cap is referred to as ‘surplus’ (‘Odfot’ in Hebrew). This excess (i.e., ‘Odfot’ ) amount must be reported and is subject to tax. The Israeli tax authority requires 'for-profit' and 'non-profit' organizations to submit an itemized ‘Odfot’ report every year on a form known as 1235 and attach it to their annual report form (1214 for for-profit and 1215 for non-profit).
ⓘ Does the Israeli Tax Authority approve the ‘Odfot’ report?
Mesh cooperated with the E&Y consulting firm to understand the requirements and accurately calculate the surpluses resulting from travel expenses. Rest assured that our information is correct and can be used to compile your ‘Odfot’ report. In addition, we update the report every year per the Israeli tax authority's instructions.
ⓘ Is the report taking into consideration only ‘completed’ transactions?
Any relevant travel transaction and expense (i.e., reimbursable and non-reimbursable), whether marked as pending or completed, is considered a potential surplus that needs to be reported.
ⓘ How is the ‘Odfot’ calculated?
45% * [(Total amount per category - deducible amount per category)] converted to ILS.
ⓘ Can users get the raw data from Mesh and calculate the ‘Odfot’ themselves?
When you download the ‘Odfot’ report you can click on the ‘Expense’ tab, and use the figures to the surpluses yourself.
ⓘ Does Mesh submit the 'Odfot' report on behalf of the company?
Mesh does NOT submit reports to the Israeli tax authority on behalf of the company. The company is solely responsible for generating the 'Odfot' form, filing it, and paying applicable taxes.
ⓘ Which Mesh entities will support the ‘Odfot’ report?
Any entity that funds and settles in USD currency.
ⓘ What info does the ‘Odfot’ report provide?
The '.xlsx' file includes the following columns:
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