Apply for an expenses grant for self employed small business owners during the coronavirus crisis

Who is eligible

You may be eligible if:

• you’re a self employed sole owner of a business (not including companies, partnerships or merged businesses)
• and your average monthly turnover in the 2019 tax year was between ILS 1,500 and ILS 25,000

You’ll have to state in your Tax Authority personal account that:

• your monthly turnover dropped by at least 25 percent compared with the same months in 2019, except July to August, for which you'll need a drop of 40%.
• Eligibility periods:
  • May to June 2020
  • July to August 2020
  • September to October 2020
  • January to February 2021
  • March to April 2021
  • May to June 2021
     
• Unapproved eligibility:
  • May to June 2021
     
• You submitted periodic VAT reports  for the months in the eligibility period and the base period. E.g. the eligibility period January to February 2021, for an authorized dealer - submitted a VAT report for January to February 2019 and 2021 and for an exempt dealer - submitted annual VAT reports for 2019 and 2020.
   
• For the grants up to November to December 2020, you managed legally acceptable bookkeeping in the 2019 tax year, that were not disqualified by the VAT Director or the Assessing Officer.
   
• If you are self employed and were on maternity or parental leave or served in reserve duty in 2019 - new regulations (dated 5 November 2020) stipulate provisions on how to calculate the decrease in turnover in cases of self-employed persons who had a "base period", referring to the relevant comparison months in 2019, "reduced activity months - "They did not work at least 7 days, every month, due to maternity or parental leave / reserve duty.
   
• you’ve submitted periodic VAT reports for the above months for 2019 and 2020
• you’ve kept account ledgers for 2019 that haven’t been disqualified

Find out about implementation on regulations for eligibility for assistance grants for people on maternity and parental leave and reserve duty

How much will you get

The grant sum depends on your average monthly turnover in 2019.
If your average monthly turnover in 2019 was:

• up to ILS 8,333 – you’ll get ILS 3,000
• from ILS 8,334 to ILS 16,666 – you’ll get ILS 4000
• from ILS 16,666 to 25,000 – you’ll get ILS 6000

Businesses that began activity in January or February 2020 will soon be eligible to apply for the expenses grant. 

If you are an individual self-employed persons who began business activity from 1 January 2020 to 29 february 2020, you may be entitled to a grant of:

• ILS 3,000 for exempt dealers
• ILS 4,000 for authorized dealers

if you meet all the following conditions:

• turnover in 2020 was from ILS 18,000 to ILS 100 million
• turnover in January and February 2020 was over ILS 1,500.
• turnover during the eligibility period is lower than turnover in January and February 2020, due to the coronavirus crisis
• you have submitted the periodic VAT reports for the eligibility period and for tJanuary and February 2020

To apply, enter your Tax Authority personal account and declare that you meet the above conditions.

When can you apply

• Application dates will be published on the Tax Authority website
• Each eligibility period will be open for 90 days

  
How to apply for the grant

You'll be able to apply for each grant period separately. The start date for each grant period will be published by the Tax Authority and will be open for 90 days. 
You’ll also need to be sign up for your Tax Authority personal account before you can apply.

1. Go to the online application form
2. Select Submit a new application
3. Complete the application
4. Make sure your bank details in the Tax Authority site are correct
5. Submit

• The grant will only be paid into an account in your name or a joint account.
• It may take a few days to verify your account. You’ll get a text or email when it’s been verified.
• You can change your account details through the public inquiries system. You’ll need the relevant documents and a photo of a cheque or a confirmation of account from your bank.
• Your accountant, or someone else who represents you can change your account details on your behalf directly.
• Controlling employees can apply for a grant for the company via the grant application system for participation in fixed expenses for businesses.

Legal sources for this service

Economic Assistance Program Law (Novel Coronavirus) (Temporary Order), 5720-2020

Regulations for the Financial Assistance Program (Novel coronavirus) (Temporary Order) (Application for a grant according to the turnover of substitute transactions), 5731 2020 Regulations File 8874