The Ministry of Finance’s November 2023 outline, as amended and approved to date:
The Israeli Ministry of Finance has published a revised compensation plan to support businesses affected by the Sword of Iron war commenced following the 7 October 2023 terror attacks against Israel. The outline includes a business continuity grant for businesses all over the country, as well as certain reimbursement of expenses in particularly badly affected areas of the country.
Business Continuation Grant: Pursuant to the outline, the property tax compensation fund will compensate businesses all over the country whose turnover is NIS 12k to NIS 400m and which incurred a decrease in turnover of over 25% for a one-month report or 12.5% for a bi-monthly report in the months of October and / or November 2023.
Businesses that began operating after 2 September, 2022, will have their eligibility examined according to a monthly average of turnover over the period of the business’ activity up until the end of August 2023. Certain businesses that report on a cash basis with delayed payment terms, will be given the option to receive compensation based on their reports for the months of November and/or December 2023.
The compensation is calculated and granted based on the business’ maximum yearly turnover and the amount of the decrease in the turnover, except in certain exceptional cases.
Businesses with a maximum yearly turnover of NIS 12k and up to NIS 300k will be entitled to receive a compensation grant in accordance with the following table (the “Compensation Table”):
| Amount of the decrease in the turnover | ||||
| Maximum business yearly turnover | 25-40% | 40 – 60 % | 60 -80 % | Above 80% |
| NIS 50,000 | NIS 1,750 | NIS 1,750 | NIS 1,750 | NIS 1,750 |
| NIS 90,000 | NIS 3,150 | NIS 3,150 | NIS 3,150 | NIS 3,150 |
| NIS 107,000 | NIS 4,200 | NIS 4,200 | NIS 4,200 | NIS 4,200 |
| NIS 200,000 | NIS 3,125 | NIS 4687.5 | NIS 7,500 | NIS 9,375 |
| NIS 250,000 | NIS 4,000 | NIS 6,000 | NIS 9,600 | NIS 12,000 |
| NIS 300,000 | NIS 4,675 | NIS 7,013 | NIS 11,220 | NIS 14,025 |
VAT exempt businesses will be granted a fixed amount of compensation as follows: (i) businesses with a turnover of up to NIS 49,800 will receive NIS 1,750; (ii) businesses with a turnover of up to NIS 90,000 will receive NIS 3,150; and (iii) businesses with a turnover of up to NIS 107,000 will receive NIS 4,200.
Businesses with a yearly turnover of NIS 300k and up to NIS 400m will be entitled to receive a business continuity grant which will consist of reimbursement of expenses of between 7%-22%, depending on the degree of damage to the business turnover, with the exception of certain sectors with different arrangements (including the agricultural sector for which additional support is being given through various schemes), as well as a reimbursement of a portion of up to 75% of salary expenses based on a formula which contemplates the level of impact on the business. Moreover, the outline stipulates a minimum compensation amount for such businesses, which is equal to the compensation amount granted to businesses with a NIS 300k turnover as described in the Compensation Table.
The outline stipulates the cap amounts of such compensation grants, being set at: (i) for businesses with a turnover of NIS 300k and up to NIS 100m – an amount of NIS 600k; (ii) for businesses with a turnover of NIS 100m and up to NIS 300m, the cap is NIS 600k with a top-up based on revenue above NIS 100m up to an aggregate maximum of NIS 1.2m; and (iii) for businesses with a turnover of NIS 300m and up to NIS 400m a cap of NIS 1.2m.
See our prior update on this in Hebrew –
* This newsletter is provided for informational purposes only, is general in nature, does not constitute a legal opinion or legal advice and should not be relied on as such. If you are seeking legal advice, it is essential to review the specific facts of each case in detail with a qualified lawyer.