04/05/2026
Do you own a business in Israel?
Has you business been impacted negatively by the recent war?
Today, the Kenesset approved a range of measures designed to offer financial compensation to small and medium sized operations:
What follows is a translation from a government website. You can start to claim, as of 17.5.2026.
Previous experience dictates that it is best done with the help of your accountant.
Good luck:
It is proposed to .... establish an assistance framework for small and medium-sized businesses, regarding participation in their fixed expenses as well as part of their wage costs.
In addition, ...... it is proposed to establish an additional track for compensation for indirect damages for businesses that sustained direct damage during the operation.
1) It is proposed that a business that suffered indirect damage during the current campaign period—defined as March and April 2026—will be eligible for compensation for that period.
2) The compensation will be adjusted to the extent of the damage and calculated based on the decline in the affected business’s turnover, the level of its fixed expenses, and the wages it paid employees during the relevant period.
3) The law also provides compensation for indirect damage to those who suffered .... for loss of rental income.
4) Eligibility for compensation will be granted to businesses with annual turnover between ₪12,000 and ₪400 million that experienced a decline in turnover of 25% or more during the operation compared to the base period.
The comparison base period is March–April 2025; however, for the hotel industry, the comparison year will be 2023.
With respect to small businesses, compensation will be provided as a fixed amount according to tiers determined by income level and the rate of decline in turnover.
The fixed compensation amounts for small businesses will be indexed to the Consumer Price Index. For medium-sized businesses, compensation will be determined based on a fixed-expenses component and a wage-participation component.
Claims will be submitted online ..... may pay an advance of 60% of the compensation amount within 21 days of submission. It is further proposed that, based on a business’s declaration that it is expected to be eligible for compensation, the Tax Authority may pay up to 50% of the compensation as an advance.
......
It is also proposed that private daycare centers be allowed to refund parents, with operators able to choose May–June as the reference months for calculation, so that the refund is included in the calculation and they remain eligible for compensation.
......
A dedicated framework is proposed for spouses of reservists..... If business activity was reduced during the base period due to a spouse’s reserve service, the compensation tier will be determined based on regular activity months from the previous year.
etc