Compensation in the hundreds of shekels: Tax Authority opens application process

The Compensation Fund at the Tax Authority opened today the option to file claims for indirect damages in connection with Operation "Lion's Roar" for the months of May-June 2026 for business owners whose business suffered direct damage as a result of the war events (damage resulting from rocket fire or blast), which caused the business activity to be suspended.

Eligible for compensation are business owners whose business was suspended for a period that ended no earlier than June 30, 2026. The compensation will be calculated in the same way as the compensation calculation for businesses across the country for the months of March-April 2026.

Eligible for compensation are businesses opened by February 27, 2026, whose transaction turnover in 2022 was from 12,000 to 400,000,000 shekels, and whose rate of decline in transaction turnover is at least 25%. An additional condition is the submission of a periodic VAT report for the eligibility period and the base period, and the submission of a withholding report for May-June 2026 if there are employees in the business.

To submit the application, one must enter the Tax Authority website, identify oneself, select the option "Indirect damage – Lion's Roar", and then the period "May-June 2026". After reading the explanatory notes, one must enter the link "Request to open a track", fill out the form and upload the required documents. After receiving a notification of approval for the request to open a track, one can enter the application form and file a claim. Claims can be filed until November 17, 2026.

In addition, the Compensation Fund opened today the option to file claims in the salary track for the months of March-April 2026. In this track, compensation is provided to businesses and self-employed individuals for the loss of wages paid to employees who were absent from their work due to the security situation, in the following cases:

1. Employees who were absent from their work to supervise their children up to the age of 14 who study in an educational institution in the special zone that was closed due to Home Front Command instructions.

2. Employees with a disability or employees whose relative has a disability, residing in the special zone.

3. Employees in an educational institution in the special zone, which was closed due to Home Front Command instructions.

The amount of compensation in this track stands at 550 shekels per full working day, multiplied by the employees' days of absence. Claims can be filed until December 31, 2026.