Dedicated program for business owners operating in the northern region
Dedicated program for business owners operating in the northern region
In view of the security situation and the expansion of the military campaign to additional localities in the north, a dedicated program has been formulated for business owners operating in the northern region, with the aim of helping them ease their cash flow in view of the security escalation and as part of the economic rehabilitation involved in the return to routine.
For convenience, the list of eligible localities in accordance with the regulations appears in the attached file. Should there be any inconsistencies between the localities appearing on the list and those appearing in the regulations, the list appearing in the regulations should be followed.
Relevant target population
Business owners operating in northern localities that appear in the fourth-to-sixth addenda to the Property Tax and Compensation Fund Regulations (Compensation Payment) (War Damage and Indirect Damage) (Swords of Iron) (Temporary Order), 5784–2023 (hereinafter: “Property Tax Regulations, 2023”) and in the seventh-to-eighth addenda to the Draft Property Tax and Compensation Fund Regulations (Compensation Payments) (War Damage and Indirect Damage) (Swords of Iron) (Temporary Order) (Amendment Number 6), 5785–2024 (hereinafter: “Property Tax Regulations, 2024).[1]
[1] It should be noted that these regulations have not yet been published in Reshumot. Should there be any change between the draft regulations and the published text, the list of localities in the published text shall be determinant.
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First alternative: Copy of the request that the business owner submitted to receive compensation from the Property Tax Office, dated May 1, 2024.
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Second alternative: Certification by a representing accountant / tax advisor (as defined in the Regulation of Representative Work by Tax Advisors Law, 5765–2005) that there has been a decline[1] of 25 percent or more in the business’s revenue in the first nine months of 2024 relative to the same period in the previous year.
[1] The decline in revenue will be measured by “business turnover” in accordance with the VAT reports that the borrower provided, or certification of a representative accountant / tax advisor as defined in the Regulation of Representative Work by Tax Advisors Law, 5765–2005. The certification provided to the banking corporation regarding the decline in turnover shall be based on the expected report to the tax authorities. With regard to new businesses that began operating during 2023, and regarding which the decline-in-revenue test is not appropriate, the bank shall examine each case on its own merit, and shall act with the appropriate sensitivity with regard to providing the option to defer with no additional interest.
Nature of the leniency
A leniency in the deferral of business credit only, for businesses operating in localities that appear in the fourth-to-eighth addenda to the Property Tax and Compensation Fund Regulations (Compensation Payment) (War Damage and Indirect Damage) (Swords of Iron) (Temporary Order), 5784–2023, subject to a request by the customer and provided that the following conditions exist:
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A business with turnover of up to NIS 25 million per year is entitled to defer business credit totaling up to NIS 2 million, excluding loans in commercial cooperation with a third party.
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The deferral period is up to three months without additional interest or fees.
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Payments will be added to the end of the loan period.
Request submissions
Requests may be submitted between December 10, 2024 and February 10, 2025, with the deferrals beginning from January 1, 2025.