Grants for 2021 self-employed can be submitted for January-February

Grants, which are among the last approved by the government to assist the economy, will be transferred to the banks' accounts in the coming weeks. These are the first grants for 2021, when revenues should be compared to the period before the severe corona crisis affected the economy, in the first two months of 2019. This is despite the fact that even in the first two months of 2020 there was still not too much impact on the economy from the corona crisis.
Today (Sunday), the possibility of submitting applications for January-February 2021 grants to the self-employed, controlling shareholders and businesses on the Tax Authority website was opened. These are the grants for receiving the "Assistance Grant for the Self-Employed and Controlled Employees" whose turnover in January-February 2021 was affected by the outbreak of the Corona virus by at least 40%, compared to the same period in 2019.
In addition, applications were opened for an "expenditure grant" for individual self-employed persons with an annual turnover of up to NIS 300,000, as well as for businesses with an annual turnover of up to NIS 400 million, whose scope of activity in January-February 2021 was reduced by at least 25%. In 2019. Applications for both types of grants can be submitted until June 15, 2021.
Similar to the presentation of data in a "long-term injury grant", and to allow transparency and certainty regarding their eligibility for grants, when applying for licensed dealers and controlling employees, data on the relevant bi-monthly cycles of the grant period in 2019 and 2021, according to the periodic reports submitted to ", And the rate of decrease in turnover cycles in relation to the rate required by legislation will be presented.
Accordingly, licensed dealers, and all relevant companies, with respect to controlling shareholders, will have to submit the periodic VAT reports even before submitting the grant application. To the extent that the system indicates that the required decrease in transaction cycles for eligibility has not been met, an option will be presented to correct the calculated rate of decrease and justify the reason for the correction, if any.
When submitting an application by an exempt dealer, the dealer will fill in the business turnover data for January-February 2021, according to the summary of receipts and a daily redemption book, and will declare if he did indeed have the required reduction in the law for eligibility for the grant. Also, as required by law, the submission of annual declarations under the VAT Act for 2019 and 2020 will be reviewed. In case of ineligibility due to non-submission of reports, the dealer will be able to re-enter the personal area for submission of application after submission.
The amount of the bi-monthly grant is up to NIS 15,000 for each eligibility period and constitutes 70% of the average taxable income per month in 2019, multiplied by 2. Individuals and controlling employees can apply for the grant, including a decrease of at least 40% in their business turnover in months January-February 2021 compared to the corresponding period in 2019, and their total taxable income in 2019 did not exceed NIS 651,600 and the average monthly taxable income from a business exceeded NIS 714.