Tonight, between Wednesday and Thursday, the Cabinet approved the Ministry of Finance's compensation outline for businesses whose revenues were damaged as a result of the war, as well as a series of easing of the unpaid leave framework. The outline is subject to Knesset approval and will be submitted for approval in the coming days.
The Tax Authority will allow online claims for the grant to be submitted until the end of the 90-day period from the date the system is opened. A prerequisite for filing a claim is the submission of periodic VAT reports for September-October 2023 and the management of ledgers lawfully.
Smotrich at a briefing at the civilian control center: "The economy is strong - we will support the home front and the home front generously but responsibly" // Photo: GPO
According to the approved outline, the Property Tax Compensation Fund will compensate businesses throughout Israel whose turnover is NIS 18,400 to NIS 25 million and whose turnover is less than 12% for one-month reporting or 5.2023% for bi-monthly reporting in October and/or November 2. For businesses that began operations after September 2022, 2023, eligibility will be assessed according to a monthly average of transaction turnover over the period of operation of the business until the end of August <>.
Outline categories
NIS 18,300 to NIS <>,<>:
Businesses whose turnover is NIS 18,300 to NIS 1,750 per year will be eligible for a permanent business continuity grant according to the level of damage to the business and as detailed in the table. VAT exempt dealers will be granted a fixed amount according to the size of the business (NIS 49,800 for businesses with a turnover of up to NIS 3,300 and NIS 120 per year and NIS <>,<> for businesses with a turnover of up to NIS <>,<> per year).
Grant table for businesses up to NIS 300,<>,
NIS 300,400 to NIS <> million:
Businesses whose turnover is NIS 300,400 to NIS 7 million per year will be eligible for a business continuity grant that will consist of reimbursement of expenses of 22% to 75%, depending on the rate of damage to the business turnover and reimbursement of <>% of wage expenses relative to the amount of the damage, according to the attached formula.
The grant formula for businesses up to NIS 400 million per year,
Compensation for businesses with a turnover of NIS 300,100 to NIS 600 million will be subject to a ceiling of NIS 100,300. For businesses with a turnover of NIS 1 million to NIS 2 million, this ceiling will gradually increase to NIS 300.400 million. Compensation for businesses with a turnover of NIS 1 million to NIS 2 million will be subject to a ceiling of NIS <>.<> million.
Business in Sderot (archive), photo: Dudu Greenspan
Easing of the unpaid leave framework:
- Removal of conditions for deducting accrued vacation days until unemployment benefits are received.
Automatic extension of unemployment days for those who have used up 180% of the days of eligibility in the past four years.
- Reducing the minimum period of unpaid leave until receiving unemployment benefits from 30 to 14 days.
The minimum eligibility period for receiving unemployment benefits will be reduced to six months out of 18 months.
These reliefs will take place between October 7 and November 10 – the date of unpaid leave determined by the Employment Service will be from the employee's actual unpaid leave.
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