The compensation fund has been opened: affected businesses can request advances for July and August

The Compensation Fund at the Tax Authority opened yesterday (Sunday) the possibility of submitting an application for advances for the months of July and August 2024 for the indirect damage caused to business owners in Safar settlements in the south and north who were evacuated, as a result of the Iron Swords War. In addition, the fund updated the list of localities, where business owners are entitled to request advances for the months of May June 2024, and opened up for business owners in the Golan Heights and the Upper Galilee the possibility to file a claim on a turnover route for the months of May June 2024.

Submitting an application in the promotion track
Submitting an application in the rotation track

In the advance route, it is possible for business owners, who meet the conditions, to request an advance on the compensation account in the amount of up to 70%, even before filing a claim. The maximum amount of the advance is 1 million shekels. Business owners interested in a higher advance can apply online with explanations. Submitting applications for advances for July and August will be possible until September 30, 2024.

In the meantime, the list of localities in which business owners are eligible to submit an application through the advance route has been updated for May June 2024, and also business owners in Erez, Yabul, Magen, Mefalsim, Nir Yitzhak, Nir Am, Alumim and Ra’im will be able to submit applications through the advance route. So far, about 17.5 thousand applications for advances have been submitted and an amount of over NIS 1.7 billion has been paid for them.

At the same time, following the Finance Committee’s decision from last week, business owners in 112 localities in the Golan Heights and the Upper Galilee, who meet the conditions, have been given the opportunity to submit a claim on a salary basis for the months of May-June 2024. Later, the option to submit a claim on a salary basis for this period will be opened, and the business owners will be able to choose whether to submit A claim in the rotation or salary track.

Until now, only tourism businesses in the Golan Heights and the Upper Galilee were entitled to compensation and now business owners from all industries will be able to file a claim. The compensations in this route are for the loss of profit and are calculated according to the decrease in the turnover of transactions between May June 2023 and May June 2024, for those reporting in bi-monthly and one-monthly reports, subject to a ceiling of NIS 5 million.

The Tax Authority emphasizes that the submission of applications and claims will be possible after identification and entry into the system, selection of an eligibility period and selection of a route. The processing time for advances is within 7 business days and for cycles within 7 to 14 business days (with the exception of applications and claims that require examination and completion of documents).