Israeli Business War Compensation

Legal notice

This is a free information tool operated by an AI model. It explains the rules and calculates from the figures you enter, but it does not examine your full circumstances and does not constitute tax advice. All of its outputs are produced automatically, with no involvement, review, or approval by a tax adviser or accountant, and an AI model may err, omit data, or present a wrong conclusion. The binding computation is the Tax Authority's and responsibility for reporting is yours. This tool is not a substitute for advice that takes account of the particular circumstances and needs of each person, and all use of its output is the user's sole responsibility.

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 the 25% 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.