Registration was opened on the Ministry of Economy website to receive eligibility for the benefit • Among those eligible: Businesses with a turnover of up to NIS 200 million with a 60% damage to income • Self-employed persons with a 25% decrease in activity are entitled to an advance
Internal Revenue Service
Photography:
Joshua Joseph
The application was opened for a 95% property tax rebate on the website of the Small and Medium Business Agency in the Ministry of Economy, as part of the economic program to assist businesses affected by the corona.
In the first phase, a retroactive submission was opened on the Small Business Agency's website for the months of June-August.
Businesses will be able to receive the discount subject to the business' eligibility for a "participation in fixed expenses" grant from the Tax Authority for these months.
These are businesses with a turnover of up to NIS 200 million and which have demonstrated a 60% damage to revenue compared to the same period last year, or businesses with a turnover of up to NIS 400 million that have a 80% damage to revenue compared to the same period last year.
The property tax rebate will be given every two months until June 2021, with the remaining entitlement to the rebate for the remaining months, for each property tax period separately, based on the previous two months in which the business received a fixed expense grant and the rate of revenue reduction.
For example, in October it will already be possible to apply for a discount for the months of November-December.
Subsequently, subject to government approval, for the months of September-October, an additional relief is expected to entitle businesses to a full exemption from property tax payment, subject to a mere 25% reduction in revenue.
Against the background of the discussions to tighten the restrictions on closure and the closure of additional businesses, the approval of the full exemption is expected to be received in the coming days.
The exemption, when approved, will also be submitted through a digital form on the Small and Medium Business Agency website of the Ministry of Economy.
All applications submitted to the Small and Medium Business Agency will be forwarded to the local authorities once a month, and the agency will reimburse the local authority for the cost of the discount given to the businesses.
The budget cost of the program is estimated at more than a billion shekels, and according to estimates, many businesses will be eligible for the discount.
Meanwhile, yesterday the Tax Authority announced that self-employed people with an annual turnover of up to NIS 300,000, who expect a decrease of at least 25% in activity due to the corona crisis, can apply for an advance for a small business expense grant for September-October.
Registration opened yesterday
Advances on account of an expense grant for a small business for September-October will be transferred in the coming days to the self-employed with an annual turnover of up to NIS 300,000, who meet the conditions for eligibility for the grant and will submit an application for an advance.
Eligible for a grant advance, self-employed people who received an expense grant for March-April, or May-June, or both and expect to have at least a 25% decrease in business activity in September-October due to the corona crisis compared to the same months last year.
The system for submitting applications for advances for small businesses was opened yesterday, after last week the Authority opened the possibility of applying for an advance for a grant for participation in fixed expenses for companies, partnerships and the self-employed with an annual turnover of more than NIS 300,000 up to NIS 400 million.
In this framework, NIS 84.2 million has already been paid for 3,700 advance applications.
Applications for an advance for a small business expense grant, amounting to 50% of the grant amount for September-October, will be made possible during the coming month.
The advances are in the amount of up to NIS 3,000, as specified: annual turnover up to NIS 100,000 - an advance of NIS 1,500;
Annual turnover 200-100 thousand NIS - in the amount of 2,000 NIS;
Annual turnover 300-200 thousand NIS - in the amount of 3,000 NIS.