On November 25, 2024, the Israeli Parliament (Knesset) Finance Committee approved the Property Tax Regulations (Damages Payments) (War Damages and Indirect Damages) (Iron Swords) (Temporary Order) for September-October 2024. These regulations provide compensation to businesses in northern localities through three alternative routes: (1) Turnover Route; (2) Salary Expenses Route; and (3) Red Route.

Key Details of the Compensation Scheme

1. Eligibility for One of the Three Routes: Businesses eligible to file claims for compensation for September-October 2024 under any of the three routes include:

• Businesses located in localities along the conflict area which were evacuated.
• Tourism businesses in localities along the conflict area, which were not evacuated, and in the Golan Heights.

2. Eligibility for the Salary Expenses or Turnover Routes: Businesses eligible to file claims for compensation under the Salary Expenses or Turnover Routes include:

• Businesses in localities along the conflict area, which were not evacuated.
• Businesses in the Golan Heights.
• Businesses in the Krayot localities (Kiryat Ata, Kiryat Bialik, Kiryat Yam, and Kiryat Motzkin).

Deadline for filing a claim in the Turnover route: April 01, 2025. No date has yet been announced for filing a claim in the Salary Expenses Route.

For details about the Salary Expenses and the Turnover routes, please refer to our update here.

3. Qualifying Expenses Route: In addition, the Israeli Tax Authority will allow businesses in the following areas to file claims under the Qualifying Expenses Grant Route for September-October 2024:

• Haifa Bay localities (except Kiryat Ata, Kiryat Bialik, Kiryat Yam, and Kiryat Motzkin).
• The Jordan Valley Regional Council.
• Localities in Central Galilee and Lower Galilee.
• Certain Amakim localities (as specified in the Eighth Addendum).

For details about the localities eligible to file a claim under this route, click here.

Deadline for filing a claim under this route: March 1, 2025.

For detailed information on the calculation of such compensation, please refer to our update here.

We would be pleased to assist you with filing claims and providing legal support throughout the process.