Your Taxes: New compensation package for Israeli businesses and property owners

What is in the new compensation package for businesses, and what else is there for victims of missile damage to property? So far, this is what we know:

Businesses with annual revenues of NIS 12,000 to NIS 300,000 are entitled to a fixed grant “according to the level of damage,” which is expected to be NIS 1,750 to NIS 14,025. Grants may range from 7% to 22% of the drop in revenues plus up to 75% of payroll expenses adjusted according to the level of damage.

But the compensation will be subject to rules and a cap. If annual revenues are NIS 300,000 to NIS 100m., the cap is NIS 600,000. If annual revenues are NIS 100m. to NIS 300m., the cap is NIS 1.2m. If annual revenues are NIS 300m. to NIS 400m., the cap is also NIS 1.2m., according to the announcement.

There may also be compensation for employees laid off for 14 days via the National Insurance Institute. Vacation pay should not be forfeited. The waiting period of five days should not apply.

If your property has taken a hit, you can claim government property compensation at: www.gov.il/en/service/online-direct-damage-claim. Upon filling in all the required details, a temporary application number will appear that will be used by the system.

After the application is approved, a permanent claim file number will be received, and a notification of its number will be sent by text message. Upon approval of the claim file number in the Israel Tax Authority’s online system, the claim processing process will begin.

The ITA’s Property Tax Division (Mas Richush) sends appraisers/engineers to inspect and assess damage caused to properties. In the event of damage to a vehicle, an Israel Police certificate signed by a police officer must be obtained.

Regular insurance companies typically will not pay out war claims, but the Property Tax Division does. In case of damage due to war, each item is automatically covered free of charge up to a maximum value, depending on the type of item and number of people in the family.

For example, in 2025, the cover for a married couple ranges up to the following amounts: furniture – NIS 25,187 plus NIS 5,092 per child; clothing – NIS 5,104 plus NIS 766 per child; electrical appliances – NIS 30,914 plus NIS 518 per child; other household items – NIS 24,312 plus NIS 2,228 per child.

If that is not enough, you may optionally pay to insure your household items to a higher value each year. This does not apply to art, jewelry, antiques, or cash. The premium is calculated at 0.3% of the additional value. The additional insured value cannot exceed NIS 979,624 in total. You can apply for this additional insurance at:

You can click on the above links. Or you can phone the government’s Compensation Fund at *4954. Details and clarifications are awaited.

The ITA announced various extensions of the reporting deadlines due to the security situation.

Comment: The “Never Again Nation” has been put to the test again, and has surprised many, but not everyone. Those who have studied history from the 1930s to the prelude to the Six Day War in 1967 are less surprised. It has involved detailed planning, rapid improvisation, hope spanning 2,000 years, and unity. Wishing you well in this difficult period.

As always, consult experienced tax advisers in each country at an early stage in specific cases.