After 6 weeks of war: The Tax Authority's compensation website went live, and already this evening, business owners and self-employed individuals whose income turnover was damaged as a result of the war will be able to apply for compensation in accordance with the approved national compensation outline.
Who can apply?
A business whose transaction turnover in the base year (2022) is from NIS 12,400 to NIS <> million and for whom the following conditions have been met:
- The rate of decline in transaction turnover is over 25% in one-month reporting and over 12.5% in bi-monthly reporting.
- The decrease in the turnover of transactions is due to indirect damage, as defined in the Property Tax Law.
- The business opened before September 1, 9.
- A periodic VAT report was submitted for the base period and the eligibility period.
- A deduction report has been filed – Form 102 for October 2023.
When is the claim submitted?
- The deadline is: From November 19, 11 to February 2023, 19
How long does it take to receive the money?
Upon receipt of the claim - the compensation fund will calculate the amount of compensation and transfer them within 7 business days (except in exceptional cases where examination and production of documents are required).
Which link do you enter?
https://www.gov.il/he/service/compensation-indirect-damage
How much do you get?
The system provides a solution for 3 population groups, according to the location of the business: businesses throughout the country have the option of submitting an application in the "qualifying expenditure" track, in accordance with the outline approved by the Knesset plenum on November 9, 11; Businesses located in localities defined in the regulations approved by the Finance Committee on November 2023, 15 are given the option to choose between 11 green tracks that offer increased compensation or a "qualifying expenditure" track. Businesses located in frontier communities, according to their definition in the Property Tax Law and the Compensation Fund, are given the option of choosing between a red track that allows receiving full compensation and the other tracks.
In order for the system to be able to calculate the amount of compensation according to the degree of damage to the business, a periodic VAT report must be submitted for the months for which compensation is required, and a deductions report if compensation is requested for wage expenses, before filing a claim in the system.
Calculation of compensation (illustration),
Main routes
"Qualifying Expenditure" track: This track is valid for October-November 2023, and will compensate businesses throughout the country 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 <>.
Green Track - Salary: In this track, businesses in localities included in the list in the regulations will be compensated for a fixed amount of NIS 520 per day, for each employee absent from the workplace during the period between October 7 and 31, 2023, for reasons specified in the regulations, including because he was evicted from his home by a government decision.
Green Track - Turnovers: In this track, businesses in localities included in the list in the regulations will be compensated, in accordance with the decline in turnover in October 2023 compared to the same period in 2022, up to a compensation ceiling of NIS 2,500,000 per compensator.
Agriculture track: For farmers within 20 kilometers of the Gaza Strip border, a route similar in essence to the frontier communities route has been established. For farmers within 20-40 kilometers of the Gaza border, a route based on loss of output per worker has been set for October 2023. This track has a ceiling of NIS 3 million per compensator.
Red track: This track enables businesses in frontier communities to receive full compensation for loss of income or loss caused to them as a result of war damage or hostilities, subject to compliance with all the conditions and requirements specified in law, regulations and case law.
Claims in the "qualifying expense" track and in the green tracks, which do not require careful examination, will be answered within a few business days.
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