The Israeli government is gradually getting its act together in providing financial support for people and businesses. Below is a brief update as of November 7, not complete as the measures are still evolving.

Evacuees:

Relocation grants are to be paid automatically by the National Insurance Institution (NII) into the bank accounts of evacuees not in subsidized accommodation, according to an announcement the NII published on November 3, 2023. Payments may range up to NIS 100 per day per child and NIS 200 per day per adult. The evacuees must file an online declaration to start the process: https://www.gov.il/he/service/yachad.

Business support:

The government announced on November 2 a financial support package for businesses indirectly impacted by the 2023 Israel-Hamas war. The announcement updates earlier proposals but is subject to Knesset approval expected “in the next few days” The proposed program would apply to businesses with annual revenue between NIS 18,000 and NIS 400,000 that suffer a 12.5% drop in monthly revenues or 25% for bimonthly revenues in October/November 2023 as applicable. Most small and medium businesses with annual revenues below NIS 1,615,000 are bimonthly VAT filers.

The package contains a number of sliding scales based on revenue decline and payroll. If revenues are between NIS 300,000 and NIS 400 million, government grants may range from 7% to 22% of the drop in revenues plus 75% of payroll multiplied by the % drop in revenue. This would be subject to monetary caps of NIS 300,000 to NIS 1.2 million depending on size of revenues. Once the online system is opened up, businesses will have 90 days to file compensation claims. There are reports the 22% may be increased in exceptional cases to 33%.

Expedited down payment grants of up to NIS 500,000 may be available for frontline Southern and Northern businesses. Evacuated individuals can claim getting-organized grants of NIS 1,000 each or NIS 5,000 per family.

The Israel Innovation Authority has an expedited R&D grant facility for hitech of up to NIS 7.5m called “Runway” here: https://innovationisrael.org.il/route/fasttrack/#about_route.

As for lay-offs and unemployment pay: minimum period reduced from 30 to 14 days, vacation ay need not be offset and other relaxations for the period October 7-November 30.

Reservist salary reimbursement:

Employers of smaller businesses with up to 10 employees called up to the IDF reserves may request expedited reimbursement of their salaries from the National Insurance Institute here: https://www.btl.gov.il/about/news/Pages/MarctMkovnet.aspx. (Tel: 02-5393722, weekdays 8am-4pm). There is no need to provide details of how long they were called up for nor provide the usual IDF confirmation (3010).

Company cars:

The Tax Authority announced on November 2 that if an employee with a company automobile is called up to the IDF reserves or laid off, they may notify their employer that the automobile is back “at the employer’s disposal” and stop paying tax on car usage fringe benefit from that date “even if it is left in the field” (i.e. not at the employer’s premises).  Moreover, the employee or someone on their behalf may make that notification retroactively up to 7 days after the reserve duty ends.

Deadlines:

The Law for Postponing Deadlines (Ad Hoc Swords of Iron) was enacted on October 18, 2023 (Book of Laws 3094). It applies to soldiers, hostages, people who were missing, evacuees, the estate of persons who died, hospitalized people,  police personnel, prison personnel, fire personnel, full time volunteers, spouses of the aforementioned, companies owned by 5 or fewer people directly or via a parent company. The law suspends a range of contractual, governmental, court, payment and tax deadlines. The law doesn’t apply to alimony or salary deadlines. Initially the stated delay period is October 7 – November 7, but is likely to be extended by the government if approved by the Knesset Foreign & Security Committee. Note that various exceptions and conditions apply.

Other measures:

E-invoicing adoption is postponed by 3 months to March 31, 2024.

People wishing to arrange imports of protective and other equipment for soldiers should contact the Defense Ministry, tel: 073-353-888 or email: [email protected].

Soldiers returning from abroad to volunteer for the IDF may receive minimal national insurance support. If they don’t have an Israeli Identity card, that must be arranged first.

Injured people and/or their families may apply to the National Insurance Institute depending on various things.

The Bank of Israel has issued guidance regarding a 3 month postponement of loan repayments for businesses and households.

The Israeli Customs Authority are reportedly leaving transportation costs out of the value of imports for customs and import taxes.

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

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Wishing peace and safety to all our readers and their families and friends.

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