Apply for a grant for businesses for help with fixed expenses during the coronavirus crisis – round 3

The Tax Authority and the State of Israel wish to support businesses that have been hurt by the coronavirus.

The grant is provided to help pay part of your fixed expenses such as rent, electricity, and water bills, if you continued to pay them during the crisis.

Grant routes

• Immediate grant - for businesses who were effected immediately with the coronavirus outbreak in March and April.
  Applications until 15 November 2020.
• Late grant - for businesses who report to the Tax Authority based on cash received 30 days or more after the transaction, as the effects of the outbreak can be felt in May and June.
  Applications until 1 November 2020.

You will be able to change your grant route from immediate to late until 14 August 2020 - this option will be avilable soon. After 14 August, you will not be able to change your grant route.

Who can receive the grant

You must meet the following criteria to receive the grant:

• Companies and partnerships – your annual turnover in 2019 was between NIS 18,000 and NIS 20,000,000 (not including VAT)
• Self employed - your annual turnover in 2019 was between NIS 300,000 and NIS 20,000,000 (not including VAT) 
• One of the following:
  • your March and April 2020 turnover has fallen by at least 25% compared to turnover in March through April 2019 (this is your base period for comparison)
  • for the immediate grant - your average turnover fell by at least 25% in March and April 2020 compared to March and April 2019
  • for the late grant - your average turnover fell by at least 25% in March to June2020 compared to March to June 2019
• You submitted all the periodic VAT reports required to calculate the grant
• If required, you manage a ledger and it has not been disqualified
• Your fall in turnover was a result of the coronavirus crisis

Eligibility for third round grant for freelancers

If you are a self employed freelancer (not including companies, or partners in a partnership) and your turnover in 2019 was from ILS18,000 to ILS 300,000 you may be eligible for the third round grant. You can see if you are eligible and apply in your Tax Authority personal account.

Conditions for receiving the grant if you are a self employed freelancer 

You will be eligible for the third round grant if you are a self employed freelancer and:

• your average monthly turnover in 2019 was from ILS1,500 to ILS 25,000
• Your average turnover has dropped by at least 25% over March and April 2020 compared to March and April 2019
• You have  submitted your VAT reports for these periods
• You have maintained the legally  required book keeping and your accounts have not been disqualified

What you need

If your type of business isn’t listed below you don’t need to attach any documents when applying – the Tax Authority may request documents later.

Business that report transactions together with other businesses

You’ll need to attach confirmation from an accountant for the following information:

• turnover for your base period and the coronavirus period
• total continuous inputs for 2019
• transactions in 2019 

Eligible non-profit organizations (according to government decision 5015)

You’ll need to attach confirmation from an accountant for the following information:

• turnover from sale of services or products for your base period and the coronavirus period
• 2019 reports for the following, or if the 2019 report has not been filed, for 2018
  • total continuous inputs from sale of services or products 
  • transactions from sale of services or products 
  • financial report 

Businesses registered in Eilat

If:

• Your business is registered in Eilat
• You do not report income tax advances
• Your annual turnover in 2019 was between NIS 300,000 to NIS 1,500,000

You’ll need to attach:
Confirmation from an accountant or tax advisor for turnover in the base period and coronavirus period

The factor for participation in fixed expenses will be set at 30%.

If:

• Your business is registered in Eilat
• You do not report income tax advances
• Your annual turnover in 2019 was between NIS 1,500,000 to NIS 20,000,000

You’ll need to attach:

• Confirmation from an accountant or tax advisor for turnover in the base period and coronavirus period
• 2018 profit and loss report – this will be used to calculate the grant

If:

• Your business is registered in Eilat
• You report income tax advances
• Your annual turnover in 2019 was between NIS 1,500,000 to NIS 20,000,000

You’ll need to attach:

• 2019 profit and loss report - or if the 2019 report has not been filed, for 2018. This will be used to calculate the grant.

How to apply for the grant

You can apply for the immediate grant route until 15 September 2020. You will be able to change to the late grant route until 14 August. After 14 August, you can apply for either grant route, but will not be able to change route.

1. Before applying you can calculate your estimated grant sum on the grant calculator
2. Log in to your Tax Authority personal account
3. Attach the required documents
4. Submit the application online

The Tax Authority may contact you for additional documents

What happens next

• If you’ve submitted your application correctly, you should receive the grant within one week.
• If more documents are needed, you’ll get an advance of 20% of the grant, up to NIS 80,000, until your application has been fully processed
• Once your application has been fully processed the rest of the grant will be paid into your bank account, minus deductible source tax

Appeals and objections

• You can submit an objection to the Tax Authority’s decision regarding your grant within 45 days of receiving the decision. Your objection will be decided on within 180 days.
• You can appeal if you disagree with the decision made regarding your objection to [email protected].
• A decision will be made within 180 days
• The committee is made up of:
  • Committee chair: A civil servant appointed by the Ministry of Finance General Accountant 
  • A civil servant appointed by the Agency for Small and Medium Businesses in the Ministry of Economy and Industry, General Director
  • A civil servant appointed by the Ministry of Finance Attorney General

Legal source for this service

Government Resolution 5015: Business aid grant for participation in fixed expenses due to the economic impact of the coronavirus crisis