Compensation of qualified expenses for businesses throughout the country - compensation claim for indirect damage (economic damage) caused to businesses throughout the country because of the Swords of Iron war

Who can file a claim

A trader with a turnover from 12 thousand NIS up to 400 million NIS (basic period - 2022), meeting the following conditions:

• Claim for October 2023: the turnover decrease is at least 25% for one-monthly reports and at least 12,5% for bi-monthly reports.
  Claim for November-December 2023; the turnover decrease is at least 25% for one-monthly and bi-monthly reports.
• The turnover decrease is the results of indirect damages, as defined by property tax law.
• The business started its activity up to 30.9.23.
• A periodic VAT report has been submitted for both the basic period and the eligibility period.
• Form 102 - deductions statement has been submitted for October, November, and December 2023.
• Any person/company, required to keep financial records for the year 2023, did so, and they are admissible.

How to submit the claim

• Compensation claims for the entire eligibility period (October, November-December 2023) – will be filed online on the Tax Authority Website.
• If documents are needed to check eligibility conditions and compensation payment, the tax authorities may request them from the applicant.
• A claim will not be considered complete until all documents required to be attached to the claim, have been submitted.
• After submitting a claim, you may correct it, provided the Tax Authority has not yet started processing it.

When should the claim be submitted

• Deadlines for submitting the claim:
  • For the eligibility period October 2023: claims can be submitted from 19.11.23 to 19.5.24.
  • For the eligibility period November-December 2023: claims can be filed from 15.1.24 to 15.6.24.

What next

Upon reception of the claim – the compensation fund will calculate the compensation and transfer the sum within 7-14 working days (except for cases where inspection and completion of documentation is required).

Compensation advance payments

• If no decision has been reached within 21 days of submitting the claim, an advance payment of 60% of the compensation amount due will be made at the director's discretion.
• If no decision has been reached within 150 days of submitting the claim, an advance payment of 10% of the compensation amount due will be made at the director's discretion.

How to file an appeal

• Any person who feels that he/she has been wrongly compensated by the tax authority may submit an appeal to the employee designated by the authority for this purpose, within 60 days of the date of the decision.
• Request for the prolongation of the deadline:
  • The request must be filed before the end of the 60 days from the date the decision has been issued and there must be a sufficient or reasonable reason to file a request.
  • The application must state the reasons for the request, together with the relevant documents.
  • Requests submitted after the deadline will only be approved in exceptional cases, upon presentation of specific reasons for the delay and in accordance with the director's decision.
• The decision:
  • The decision will be motivated and will be rendered within 30 days from the date of submission of the required documents and details, whichever is later.
  • The Director may, for specific reasons, extend the deadline until the end of the year - starting from the day on which he receives the notice of the appeal.
• If the person authorized to render the decision does not notify the person who has filed the appeal about his decision within the above-mentioned time-period, including the extended period, the appeal will be considered to have been accepted.

To file an appeal against the tax authorities' decision

• Any decision taken by the tax authority may be appealed before an appeal committee at the Ministry of Justice within 60 days.
• The decision on the appeal:
  • Will be sent to the e-mail address provided when the appeal was submitted (up to two e-mail addresses may be entered for this purpose), accompanied by a text message announcing the rendering of the decision.
  • Any person who has filed an appeal, is responsible to check frequently all incoming mail, spam, and archive mailboxes. He/she is also responsible for updating any changes to his/her e-mail address provided at the time of submission of the appeal.
• The Appeals Committee will consist of two members: one official and one public representative, to be appointed by the Minister of Justice.