Loans and deferred installments: Business owners get deferred payment of VAT, property taxes and electricity • Some will receive a grant of thousands of shekels if they prove damaged
Business relief on the way // Photo: Hertzi Shapira
The state is trying to minimize the economic damage to the Corona, while helping business owners and workers.
Business owners will be denied the various payments - VAT, Social Security, municipal taxes and electricity - and some will receive a grant of NIS 5,000 if they prove that they have been damaged.
However, there are already many workers who are between the hammer and anvil: they have been taken on forced leave without pay, and on the other hand cannot claim unemployment benefits for the first 30 days. Under the new guidelines, employees and employers will be able to agree on a reduction in conditions between them.
The state also decided to set up a dedicated loan path that mainly assisted small and medium businesses through the State Guarantee Loan Fund. The loans are up to NIS half a million or 8% of the last annual turnover, whichever is higher. Employers will also be able to withdraw money from the pension savings, that is, pay themselves unemployment benefits in the event their business is closed or dysfunctional. Withdrawing the funds, up to NIS 12,200 per year in which employers have deposited funds for their pension insurance, will be exempt from paying taxes.
Business owners who face difficulties due to the Corona crisis and fail to meet payments to employees or suppliers can also initiate their own initiative in insolvency proceedings and economic rehabilitation.
Meanwhile, Treasury Attorney General Ronnie Hezekiah has instructed banks to allow a four-month deferral of mortgage payments to eligible customers.
As part of the relief granted, each borrower may apply for and receive the repayment of the mortgage payments.