The Knesset plenum tonight approved the Finance Ministry's outline for responding to businesses for the indirect damage caused to them as a result of an iron sword war.
The outline includes a business continuity grant for businesses throughout the country (businesses in frontier communities are entitled to full reimbursement for this damage as prescribed by law), as well as a series of leniencies in the unpaid leave outline.
According to the approved outline, the Property Tax Compensation Fund will compensate businesses throughout Israel whose turnover is NIS 12,400 to NIS 25 million, and there is a decrease in turnover of over 12% for one-month reporting or 5.2023% for bi-monthly reporting in October and/or November <>.
For businesses that began operations after September 2, 2022, 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 2023. Businesses that report on a cash basis and most of their income from current payment 30+ will be given the option to receive compensation based on their reports for November and/or December 2023.
Businesses with a turnover of NIS 12,000 - NIS 300,000 per year: These businesses will be entitled to a permanent business continuity grant according to the level of damage to the business and as detailed in the attached table (Table 1).
VAT exempt dealers will be granted a fixed amount according to the size of the business (NIS 1,750 for businesses with a turnover of up to NIS 49,800, NIS 3,150 for businesses with a turnover of up to NIS 90,4 and NIS 200,107 for businesses with a turnover of up to NIS <>,<>).
Businesses with a business turnover of NIS 300,000 – NIS 400 million per year: These businesses will be entitled to a business continuity grant that will consist of reimbursement of inputs (reimbursement of expenses) of between 7-22% according to the rate of damage to the business turnover, except for unique industries for which a different outline has been established, as well as reimbursement of 75% of wage expenses relative to the amount of the damage, according to the attached formula (Table 2)
In addition, these businesses have a minimum grant in the amount of the grant for businesses with a turnover of up to NIS 300,1, as detailed in the previous table (Table <>).
Compensation to businesses with a turnover of NIS 300,100-600 million will be subject to a ceiling of NIS 100,300. For businesses with a turnover of NIS 1-2 million, this ceiling will gradually increase to NIS 300.400 million. Compensation to businesses with a turnover of NIS 1-2 million will be subject to a ceiling of NIS <>.<> million.
The Tax Authority will allow online claims for the grant to be submitted until the end of the 90-day period from the opening of the system, which will be opened within 10 days. A prerequisite for filing a claim is the submission of periodic VAT reports for September-October 2023 and the management of ledgers lawfully.
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 4 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 6 months out of 18 months.
- Cancellation of 5 days of waiting
– cancellation of collection from the employer during the period of unpaid leave in the amount of NIS 350 – automatic extension of unpaid leave for evacuees
– a special grant for those aged 67 and over who lost their jobs
– cancellation of the count of unpaid leave days to a quorum of 60 days to prevent dismissal for women who returned from maternity
leave
– a designated model for calculating unemployment benefits for employees who are self-employed and salaried employees
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.
Wrong? We'll fix it! If you find a mistake in the article, please share with us