The government approved the Ministry of Finance's plan last night to provide assistance to businesses for the indirect damage caused to them following the Swords of Iron war.
The plan includes a business continuity grant for businesses across the country (businesses in border communities are entitled to full compensation for this damage as stipulated by law), as well as a series of benefits in the unpaid vacation plan. The plan is subject to the approval of the Knesset and will be brought for its approval in the coming days.
Business continuity grant
According to the approved plan, the compensation fund will compensate businesses across the country whose revenue turnover ranges from 18,000 ILS to 400 million ILS and there is a reduction in turnover of over 25% for monthly reporting or 12.5% for bimonthly reporting in October and/or November 2023. Regarding businesses that commenced their operations after September 2, 2022, eligibility will be determined based on the monthly average of business turnover during the business activity period until the end of August 2023.
Businesses whose turnover is 18,000 ILS - 300,000 ILS per year
These businesses will be eligible for a fixed business continuity grant based on the level of impact on the business, as specified in the attached table. Businesses exempt from VAT (Value Added Tax) will receive a fixed amount based on the size of the business (1,750 ILS for businesses with a turnover of up to 49,800 ILS per year and 3,300 ILS for businesses with a turnover of up to 120,000 ILS) per year.
Businesses whose business turnover is 300,000 ILS - 400 million ILS per year
These businesses will be eligible for a business continuity grant that will consist of a partial reimbursement (expenses refund) ranging from 7% to 22%, depending on the level of impact on business turnover, as well as a 75% reimbursement of payroll expenses in relation to the extent of the damage, according to the attached formula.
Compensation for businesses with a turnover of 300,000 to 100 million shekels will be subject to a cap of 600,000 shekels. For businesses with a turnover of 100 million to 300 million shekels, this cap will gradually increase to a level of 1.2 million shekels.
Compensation for businesses with a turnover of 300 to 400 million shekels will be subject to a cap of 1.2 million shekels.
The Tax Authority will allow online submission of claims for grants until the end of a 90-day period from the opening of the system. A preliminary condition for filing a claim is the submission of two VAT reports for the months of September and October 2023, as well as the proper maintenance of ledgers.
Relief (Provided) in the Furlough Program
- Removing the conditions for offsetting accrued vacation days until unemployment benefits are received.
- Automatic extension of unemployment days for those who have used 180% of the eligibility days in the last 4 years.
- Reducing the minimum unemployment period until receiving unemployment benefits from 30 to 14 days.
- The minimum qualification period for receiving unemployment benefits will be reduced to 6 months out of 18 months.
This relief will be provided from 7.10 to 30.11 - the date of furlough determined by the Employment Service will start from the date of the effective furloughing of the employee.
