Below is a round-up of business and other announcements relating to the Swords of Iron war.

Tax reporting:  

The deadline for reporting and tax payment for the purposes of VAT, withholding taxes and tax advance payments for September 2023 has been extended (by only a few days) to October 26, but no fines will be imposed if filings are made by November 23. Interest and inflation indexation will accrue unless an individual request for relief is filed. IDF reservists and Southern residents can request relief for any delays.

As for 2022 annual tax returns, filing deadlines in an arrangement between the CPA Institute and the Israeli Tax Authority have been extended by a month. Corporate returns due by October 31 may be filed by November 30 and individuals’ tax returns due by November 30 may be filed by December 31.

Withholding tax exemption certificates that expired on or after September 30 are automatically extended to November 30.

No new liens (bank and vehicle freezes) will be imposed for the time to enforce payment of tax debts, and existing liens won’t be pursued until October 20. After then, get your accountant or tax advisor to request individual relief through the SHAAM or MAPAL systems. And if your accountant is called up, he can send emails to: [email protected] (assuming he has a phone charger…).

The deadline for filing employment leaving claims on Form 161 is extended to January 1, 2024.

Leniency is possible in other cases too, depending on the circumstances

National Insurance:

Because of the war, no liens will be executed for non-payment of national insurance.

The deadline for national insurance advance payments due on October 15 is extended until “approximately” two weeks after the end of the emergency, to be decided in due course.

Companies listed on the Tel-Aviv Stock Exchange:

The President of the Israeli CPA Institute announced on October 10 that the Israeli Securities Authority will allow a 30 day extension to December 30 to submit quarterly reports for the third quarter of 2023.

Property Compensation:

The Israeli government pays compensation within prescribed limits for damage to household and business property caused by hostile action. To file a property damage compensation claim with the Israeli Tax Authority, who handle such things, visit:  https://www.misim.gov.il/smPapaInternet/frmOpenMiniLogin.aspx.

Do NOT move equipment, inventory, waste or any object from your house or business, without prior coordination with an appraiser of the Compensation Fund. And do NOT fix damaged property without prior inspection by an appraiser.

Also for details of relevant tax offices in English  try: https://www.gov.il/en/Departments/publications/reports/pa191023-1

And in Hebrew for initial advance compensation applications: https://www.gov.il/he/service/pay-advances-to-business-owners-in-frontier

Do NOT move equipment, inventory, waste or any object from your house or business, without prior coordination with an appraiser of the Compensation Fund. And do NOT fix damaged property without prior inspection by an appraiser.

Charities (Public Institutions):

Public institutions have been granted an extension until November 30 to file activity reports for 2022 with the Charities Registrar.

Normally, charities must stick to their stated approved objectives. However. an instruction of the Justice Ministry dated October 10, 2023. allows a charity to carry out activities intended to provide immediate essential wartime aid similar to its stated objectives, without having to request a formal amendment to their objectives. But the charity must pass a formal resolution to this effect. For example, a charity with objectives that include aid to the needy or strengthening contact with past members of a particular unit may expand this and raise money to buy food and equipment for IDF reservists or war victims and so forth. However, the charity must record income and expenses of such new activities separately in its books. All this is so long as the present emergency continues.

Charitable donations:

A 35% tax credit is available to individuals who donate more than NIS 200 but no more than 30% of taxable income or NIS 10,019,808 in 2023 to Israeli charities (public institutions) approved under Section 46 of the Israeli Income Tax Ordinance. Companies can get a 23% tax credit. Keep original or digitally signed receipts.

If you are a US citizen or green card holder, the IRS may allow you a US tax deduction for donations to qualified US charities, not Israeli charities – so consider donating to US “friends of Israel” charities. If applicable conditions are met, US taxpayers may get a US tax deduction AND an Israeli tax credit up to 25% of taxable income, under Article 15A of the US-Israel Tax Treaty.

If you have a business that makes a charitable donation, there is a tradition in Israel for publicizing your wartime generosity. Later the public just might be minded to buy from your business. For details visit: https://www.asakimmitgaisim.com/about-english

As always, consult experienced legal and tax advisors in each country at an early stage in specific cases.

Next step: 

Please contact us if you have any questions.

Wishing peace and safety to everyone.

(c) Leon Harris 15.10.23