Wartime Grant: Small Business Compensation for the War

Core Concept

This grant is financial assistance from the state for small businesses whose income has decreased due to the "Swords of Iron" war. The objective is to help businesses stay afloat and compensate for a portion of their losses. The grant is intended for businesses with an annual turnover of up to 300,000 shekels.

Who is eligible?

To qualify for the grant, your business must meet specific criteria. The main conditions are:

Business Type: You are registered as an Osek Patur or Osek Murshe.
Annual Turnover: Your annual turnover for 2022 or 2023 does not exceed 300,000 shekels.
Decrease in Turnover: You can demonstrate a significant drop in revenue during the reporting months (e.g., October-December 2023) compared to the same period in the previous year.
Record Keeping: You have maintained proper accounting records (ניהול ספרים תקין).

Who is NOT eligible:

Businesses with an annual turnover exceeding 300,000 shekels.
Businesses unable to prove a war-related decrease in revenue.
Businesses with tax violations.

Your Rights

The grant amount is not fixed and is calculated on an individual basis. It depends on several factors:

The amount of your average monthly turnover.
The extent of the revenue decrease during the war period.
Your fixed expenses (הוצאות קבועות).

As a rule, the Tax Authority provides a calculator on its website for a preliminary calculation. The amount can range from several thousand to tens of thousands of shekels.

Scroll table horizontally

Factor	Impact on Grant Amount
Decrease in Turnover	The higher the percentage of the decrease, the larger the grant.
Fixed Expenses	The higher the substantiated expenses, the larger the grant.
Average Turnover	Used as the basis for calculating compensation.

Step-by-Step Guide

The application process is fully automated and conducted online through the personal account on the Tax Authority's website.

Preparation: Gather all necessary financial reports confirming the decrease in turnover. Consult with your accountant (Roeh Heshbon).
Login: Go to the official website of the Israel Tax Authority. Log in to your personal account (אזור אישי).
Locate the Form: Find the section dedicated to compensation for the "Swords of Iron" war (פיצויים חרבות ברזל). It is usually on the main page.
Complete the Application: Open the form for the "Business Continuity Grant" (מענק המשכיות עסקית). The system will automatically populate most of your data. You will need to enter revenue data for the current and previous periods.
Review and Submit: Carefully check all figures. Errors may lead to rejection. Submit the application.
Awaiting Decision: A decision is usually made within a few days. The payment is transferred directly to your bank account registered with the Tax Authority.

List of Documents

Although the application is submitted online, you must have the following documents ready to verify your data:

Income and expense reports for the compared periods (e.g., VAT reports).
Confirmation of bank account management (אישור ניהול חשבון) or a scanned check.
Copy of your identity card (Teudat Zehut).
Business registration documents (Teudat Osek Murshe / Patur).

Potential Issues

Submission Deadlines: Strict deadlines are set for each reporting period (e.g., September-October, November-December). Missing a deadline results in the forfeiture of your right to the grant for that period.
Data Accuracy: Any discrepancy between the data you submit and the information held by the Tax Authority will lead to delays or rejection. Always consult with an accountant.
Audits: The Tax Authority reserves the right to conduct an audit (ביקורת) within several years after the payment and may demand a refund if violations are discovered.
The Grant is Income: Remember that the grant received is considered income and is subject to taxation.

Contacts and Links

As official links and conditions may change, always use the primary source.

Official Website: To submit an application and obtain current information, search Google for the official website of the Israel Tax Authority (רשות המסים בישראל).
Call Center: The Tax Authority has a dedicated call center for consultations. The number can be found on their official website.

ATTENTION: Do not use unofficial links or trust intermediaries who promise a "guaranteed" receipt of the grant.

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