business owners will be allowed to choose 2018 or 2019 to rely on their report to calculate the amount of loss

Posted on Jul 17, 2020 by Ifi Reporter - Dan Bielski

The Minister of Finance, Israel Katz, announced that business owners and the self-employed will be able to choose whether to rely on the 2018 reports or the 2019 reports to calculate the amount of loss of income in order to determine the amount of the social grant of up to NIS 15,000.
So far the tax authority has objected to business owners and self-employed people choosing which report to base because it makes the review process more complex; only those who opened the business in 2018 and lost, could rely on 2019 reports.
According to Katz, the decision was made following many cases brought to his attention, and now, in order to allow those entitled to receive the higher of the two, he allows the right to vote.
It was also decided that if reports were submitted for both 2018 and 2019 - then the system would automatically calculate according to each year and give the highest grant between them.
Self-employed and business owners who have not yet submitted the 2019 reports will receive the grant by 2018 and after submitting the 2019 report if it is found that they are eligible for a higher grant a completion will be made.
As stated, despite much criticism so far, the change will not apply to all the grants awarded so far, but only for the social grant of up to NIS 15,000, which should be given by the end of June 2021 to those whose income turnover has fallen by more than 40%.


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