Starting today (Monday), the Compensation Fund of the Tax Authority allows for the submission of claims for compensation for indirect economic damage incurred by businesses in the north affected by the security situation during September-October 2024. This financial assistance may serve as a lifeline for businesses impacted by closures, reduced activity, or extraordinary expenses forced upon them during this difficult period.
Claims can be submitted through two main channels: The first, the revenue channel, is intended for businesses whose income has significantly decreased. This channel is open to businesses in conflict zone areas, the Upper Galilee, the Golan Heights, and the Krayot (Kiryat Bialik, Kiryat Ata, Kiryat Yam, and Kiryat Motzkin). Under this channel, compensation of up to 5 million NIS will be available per business. The second channel is the eligible expenses channel, aimed at businesses that had to bear extraordinary expenses. This channel is relevant for settlements in the Central Galilee, Lower Galilee, Jordan Valley, valley regions, and Haifa Bay, excluding the Krayot. This service is available for businesses whose transaction turnover in 2022 ranges from 12,000 NIS to 400 million NIS, allowing them to apply for a grant for indirect damage – including economic losses incurred due to the payment of fixed costs and salaries resulting from the war.
Submissions are made through a simple online system on the Tax Authority’s website. After identification, applicants choose the period “September-October 2024” and the appropriate channel according to the type of damage. It is noted that the eligibility for compensation depends on the location of the business as registered with VAT. The aim is to ensure that assistance reaches businesses that have been clearly impacted due to the security directives established in these areas.
