israeli-business-war-compensation
Israeli Business War Compensation
Problem
When war disrupts an Israeli business, the lost revenue, idled employees on חל"ת, and fixed costs that keep ticking can mean thousands of shekels in compensation per month - but the rules are split across two parallel frameworks (Iron Swords 2023 and Shaagat HaAri 2026), four mutually exclusive tracks, and a maze of thresholds that depend on VAT filing cadence, business location, turnover size, and employee headcount. Filing under the wrong track or missing a 25% / 12.5% threshold by a single percentage point forfeits the claim for that period, and the choice is usually irreversible.
Instructions
Step 1: Identify the framework
Two parallel frameworks operate today. Both rely on the same Property Tax & Compensation Fund Law, 1961 (חוק מס רכוש וקרן פיצויים, תשכ"א-1961), §§35–36, but each has its own hora'at sha'a (temporary order) regulations.
| Framework | Damage period | Filing deadline | Reference baseline |
|---|---|---|---|
| Iron Swords (תשפ"ד-2023) | From October 7, 2023 onward | Per qualifying period (regulation defines it; check the active regulation text) | Standard same-period prior-year |
| Shaagat HaAri (March 2026) | March-April 2026 (תקופת הפגיעה 03-04/26) | Online: 30.06.2026; non-online: 31.05.2026 | Same period 2025 (or 2023 for evacuated north) |
Statutory anchors. The Shaagat HaAri framework was passed in second and third readings on 4.5.2026 and published in ספר החוקים 3525 as two parallel laws: חוק התוכנית לסיוע כלכלי (הוראת שעה) (סיוע לעסקים ולמוסדות ציבור), התשפ"ו-2026 (business-side, governs everything in this skill) and חוק התוכנית לסיוע כלכלי (הוראת שעה) (תעסוקה), התשפ"ו-2026 (employee-side, governs the chal"t dmei avtala flow, that's israeli-unemployment-benefits-navigator). Cite the published act, not the March 2026 draft framework, when communicating with the Tax Authority or in appeals.