War and hostility damage
According to the Property Tax Law, the Compensation Fund and the relevant regulations, every resident’s household items are insured by the state against war damage by a government compensation fund, for free.
In case of damage to items in a war, each item within modest limits, depending on the type of item. The following are examples at 2021 rates:
Furniture: NIS 26,620 per couple plus NIS 5,382 per child;
Clothes: NIS 10,932 per couple plus NIS 1,640 per child;
Electronic and electrical appliances: NIS 36,088 per couple plus NIS 604 per child;
Other household items: NIS 22,063 per couple plus NIS 2,022 per child.
You can pay to insure your household items to a higher value until 31 December of that year. The premium is 0.3% of additional value up to NIS 905,747 of additional value. You cannot extend the state insurance to cover art, jewelry, antiques or cash.
Procedure
As soon as possible after a hostile incident, including damage caused by shooting, rocks or Molotov cocktails, property fund officials endeavor to visit the affected area accompanied by valuers and engineers. They explain how to claim.
If they don’t arrive, you should visit a tax office or file an online claim with police confirmation of damage due to the hostility. Damage should be notified within two weeks, compensation should be claimed within three months.
In the case of property damage, the valuer will carry out a valuation and assess the cost of repair by repair professionals you choose.
In the case of a vehicle, repairs approved by the valuer will be carried out at a garage chosen. Aside from the claim form, you will need to supply the vehicle license, police confirmation, power of attorney if the claimant isn’t the owner, leasing or rental agreement, insurance confirmation, photocopy of a check or confirmation from your bank that you have an account there.
In the case of business damage, compensation is available for the cost (excluding VAT) of inventory and assessed market value of equipment if you can prove ownership. You should attach to the claim form a list of items, financial statements and invoices confirmed by your accountant, tax authority withholding tax confirmation, photocopy of a check or confirmation from your bank that you have an account there.
If you are an affected a passer-by, you should obtain a Police confirmation that damage was caused by the incident to your possessions and hand it to a Property Fund official at the site or at a Tax Office. Try to show them the damaged items.
In all cases, nothing affected should be moved without the valuer’s approval. For additional assistance, call the Property Fund helpline at: *4954 or visit the above websites.
Monthly Tax Reporting
In view of the present hostilities, the monthly/bimonthly reporting dates are currently May 21 for national insurance (social security), May 24 for income tax advances, withholding tax (payroll etc), May 27 for VAT, and May 31 for requesting ongoing impact corona grant claims. National insurance credit card payments set for May 20 were generally unchanged.
Corona grants
Self-employed individuals whose monthly sales revenues averaged NIS 1,500 – NIS 24,000 in 2019 but fell by 25% in January-February 2021 or March-April 2021 may claim still corona grants. Grant amounts for them range from NIS 3,000-6,000. Special rules apply when calculating the average in the case of maternity, reserve duty or businesses started in January-February 2020.
Other businesses and major company shareholders may receive larger grants according to different rules.
The Israel Tax Authority administers most of the corona grants. Make sure the ITA has your latest bank account details.
As always, consult experienced tax advisers in each country at an early stage in specific cases.
leon@h2cat.com
The writer is a certified public accountant and tax specialist at Harris Horoviz Consulting & Tax Ltd