Apply for a grant for self-employed and controlling owners in close-held corporations - coronavirus crisis second round

The Tax Authority and the State of Israel are providing support to businesses that have been hurt by the coronavirus (Covid-19).

Find out if you are eligible for a special grant and how to apply.

Final date for applications - 17 August 2020

Who can receive the grant

You must meet the following criteria:

• you were born in or before 1999
• you are one of the following:
  • self-employed from 1 October 2019 or earlier for at least 6 months
  • a controlling owner in close-held corporation and:
    • have drawn a salary from or before 1 October 2019
    • and are not eligible for unemployment pay based on this salary from the National Insurance Institute (NII) 
• you submitted your annual tax report for either:
  • 2018
  • 2019, if the business began operating in 2018 and reported a business loss
  • 2019, if the business began operating in 2019 from 1 October
• your business’s total taxable income in the reported year (2018 or 2019) was up to ILS 1,000,000
• if you are a controlling owner, the total taxable income is from all sources, together with your proportionate share of the business’s income, according to your percentage of the business’s income
• you received an average taxable monthly income in the reported year (2018 or 2019) above ILS 714 per month
• if you are a controlling owner - the average monthly income from your salaries from companies that you control was above ILS 714 per month
• your business turnover was at least 25% lower in March through June 2020, compared to March through June 2019, and you reported VAT for these months
• if your business began operating after 1 March 2019, your business turnover was at least 25% lower compared to the average monthly turnover from when you began operating to 29 February 2019. The average will be doubled by 4 months

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 ILS 18,000 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 ILS 1,500 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 submitted your VAT reports for these periods
• you have maintained the legally required book keeping and your accounts have not been disqualified

How to apply for the grant

1. Enter your Tax Authority personal account
2. Tap on the grant for businesses during the coronavirus crisis (מענק לעסקים לתקופת הקורונה)
3. Complete the online application – make sure that your bank account details are correct. You can update them on the application
4. Complete the declaration that states:
   • your business was active for at least 6 months from 1 October 2019
   • if you are a controlling owner – you received a salary from the business from 1 October 2019 or earlier, and you are not eligible for unemployment pay from NII, due to income
   • your businesses turnover decreased by at least 25% over the 4 months, March through June 2020, compared with the same period in 2019

If you are a self employed freelancer, you can apply for the second and third round grants at the same time.

Getting the grant

• The grant will be paid into the bank account that appears in your Tax Authority personal account. Make sure your bank account details are correct. You can update them on the application.
• The grant will be paid 5 days after your bank account details have been verified and will appear as “סיוע לעסקים”.

Legal source for this service

Law to increase the rate of participation in the workforce and to reduce social disparities (work grant), Chapter C2: Grant for self-employed and salaried controlling owners in dealing with the coronavirus.