Israel's cabinet has approved the Ministry of Finance's plan to compensate businesses for the indirect damage of the war. The plan includes a continuity grant for businesses all over the country (businesses on the front line are entitled to full reimbursement for this damage as stipulated in the law) as well as a range of benefits for workers on unpaid leave. The plan requires Knesset approval and will be voted on in the coming days.
Business continuity grant
According to the approved plan, the Property Tax Compensation Fund will compensate businesses throughout the country whose annual turnover is NIS 18,000 to NIS 400 million, and whose turnover has decreased by more than 25% for a one-month report or 12.5% for a bi-monthly report in the months October and/or November 2023. Regarding businesses that started their activities after September 2, 2022, eligibility will be examined according to a monthly average turnover for the business's activity up to August 2023.
Businesses whose business turnover is NIS 18,000-300,000 per year will be entitled to a fixed business continuity grant depending on the level of damage to the business.
VAT-exempt self-employed will be granted a fixed amount depending on the size of the business (NIS 1,750 for businesses with a turnover of up to NIS 49,800 per year and NIS 3,300 for businesses with a turnover of up to NIS 120,000 per year).
Businesses whose annual turnover is NIS 300,000 to NIS 400 million per year will be entitled to a business continuity grant that will consist of a reimbursement of expenses) of between 7%-22%, depending on the degree of damage to turnover, as well as a reimbursement of 75% of salary expenses in relation to the amount of damage.
Compensation for businesses with turnover of NIS 300,000 to NIS 100 million per year will be subject to a ceiling of NIS 600,000. For businesses with a turnover of NIS 100-300 million, this ceiling will gradually rise up to the level of NIS 1.2 million. The compensation for businesses with a turnover of NIS 300-400 million will be subject to a ceiling of NIS 1.2 million.
The Tax Authority will allow the submission of online claims for the grant until the end of a period of 90 days from the date of opening applications. A prerequisite for filing a claim is the submission of VAT reports for September-October 2023.
Relief for workers on unpaid leave
Relief for workers on unpaid leave includes terms that offset vacation days through to receiving unemployment pay. There will be automatic extension of unemployment pay for those who have taken 180% of entitled days over the past four years. Reducing the minimum unpaid work leave period for receiving unemployment pay from 30 to 14 days and the minimum qualification period for receiving unemployment benefits will be reduced to 6 months out of 18 months. These easements apply between October 7 and November 30.
Published by Globes, Israel business news - en.globes.co.il - on November 2, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.