Government measures in key jurisdictions 4th edition - Flipbook - Page 70
Israel
Moreover, according to a new legislations, reimbursement of income tax advances paid for the months
of January and February 2020 is now available, if it was proved to the assessing officer that the tax which
the taxpayer may owe for 2020 will be less than the amount of advances he owes for that year.
Monetary grants not subject to VAT were also provided to businesses hurt by the COVID-19 pandemic.
The grants were doled out in three rounds:
Round #1 – This grant is for self-employed individuals with at least a 25% decrease in revenues during
March-April 2020 compared to those months in 2019, subject to certain additional conditions. The grant
amount is up to NIS 6,000, and the application for the grant must be submitted by no later than July 1,
2020.
Round #2 – This grant is for self-employed individuals and salaried business owners with at least a 25%
decrease in revenues during March-June 2020 compared to those months in 2019, subject to certain
additional conditions. The grant amount is up to NIS 10,500, and the application for the grant must be
submitted by no later than August 17, 2020.
Round #3 – This grant is for self-employed individuals and corporations for help with fixed expenses
and is granted to businesses with an annual turnover of up to NIS 20 million and whose profits were
affected by COVID-19 (at least a 25% decrease in revenues during March-April 2020). The grant amount
is up to NIS 400,000, and the application for the grant must be submitted by no later than September 15,
2020 (and for "late track grants" intended for cash-based reporters, no later than November 1, 2020).
Furthermore, temporary emergency regulations were published to provide the following additional
grants:
1. A special grant for every family; 500 NIS for every child up to the fourth child (and NIS 300 for each
additional child), and NIS 750 for each senior citizen above 18. Such grants will not be deemed as
income in the hands of the individuals.
2. A special adaption grant to those who have reached the age of 67 and who were dismissed or sent
on unpaid leave by their employer between 1.3.2020 and 15.8.2020 for a period of at least 30 days,
if they meet the conditions of entitlement. The grant amounts range from NIS 1,000 to NIS 4,000 per
month, depending on the level of the employees' income from the pension. The grant does not
affect entitlement to an old-age pension.
3. Small business expense grant for self-employed individuals with turnover of up to NIS 300,000 in
2019, whose turnover was affected by the COVID-19 (at least a 40% decrease in revenues during the
months May 2020 to June 2021 compared to the revenues in 2019). The grant amount is up to NIS
6,000 and the application for the grant must be submitted by no later than November 16, 2020.
4. Bi-monthly grants for self-employed individuals and salaried business owners with at least a 40%
decrease in revenues during May-Oct. 2020 compared to those months in 2019, subject to certain
additional conditions. The bi-monthly grant amount is up to NIS 15,000, and the application for the
grant must be submitted by no later than November 25, 2020.
5. Special grants for self-employed individuals and corporations for help with fixed expenses that have
not been spared, despite the decrease in the volume of activity of the business due to COVID-19,
such as rent, electricity, water and etc. The grants are granted to businesses with an annual turnover
of up to NIS 400 million in 2019 and whose turnover was decreased due to the COVID-19 (at least a
40% decrease in revenues during the months May 2020 to June 2021 compared to the revenues in
2019). The grant amount is up to NIS 500,000.
6. Entitlement to tax-free withdrawal of funds from a study fund up to a ceiling of NIS 7,500 per month
(even if 6 years have not yet passed since the first deposit to the fund).
In addition, as part of the government's efforts to strengthen the real estate and construction industry in
light of the COVID-19, a reduction of purchase tax brackets for an additional residential apartment (a
residential apartment that is not the buyer's single apartment) was approved in order to motivate the
real estate market.
Government measures in key jurisdictions
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