Government Support for Businesses During Military Operations in Israel: Updated Compensation Framework

On June 22, 2025, the Israeli Ministry of Finance introduced an updated compensation plan for businesses affected by the ongoing military operation “A People Like a Lion.” The framework builds on the model used during Operation “Iron Swords” in 2023, with important adjustments reflecting the broader scale of the current conflict and lessons learned from past experience.

Unlike the 2023 plan, which prioritized geographic zones (the “traffic light” system) and primarily supported businesses in southern and northern border regions, the current plan applies nationwide. Given that missile attacks have impacted the entire country, compensation will be available regardless of a business’s location.

To qualify for compensation (maanak), businesses must demonstrate a decline in revenue of at least 25%. The amount granted depends on both the business’s annual turnover and the extent of its revenue loss – the greater the impact, the larger the grant.

Compensation by business size and loss level includes the following:

• For businesses with annual turnover between NIS 12,000 and NIS 50,000 – a fixed grant of NIS 1,750
• For NIS 50,000 to NIS 90,000 – NIS 3,150
• For NIS 90,000 to NIS 107,000 – NIS 4,200
• For NIS 107,000 to NIS 150,000 – between NIS 2,650 and NIS 7,950 depending on the revenue drop
• For NIS 150,000 to NIS 200,000 – between NIS 3,125 and NIS 9,375
• For NIS 200,000 to NIS 250,000 – between NIS 4,000 and NIS 12,000
• For NIS 250,000 to NIS 300,000 – between NIS 4,675 and NIS 14,025
• For businesses with turnover above NIS 300,000 – support will be based on actual fixed costs and payroll, proportionate to the revenue decline

At this stage, the duration of the compensation program has not been finalized. Discussions are ongoing, particularly considering long-term infrastructural damage. Even if the conflict ends soon, full recovery of transport, utilities, and commercial areas could take months. Historically, such support schemes often continue beyond the end of active hostilities.

It’s important to differentiate direct and indirect damage. This plan addresses indirect damage, such as revenue loss. If your business has sustained direct physical damage (e.g. property destruction due to rocket fire), you should contact the Israeli Tax Authority immediately at *4954. An inspector will be dispatched to document the incident.

If the damage is minor (below NIS 30,000), you may submit an accelerated online claim – with no need for in-person evaluation. Claims are typically processed within 7 business days. (Application link is in the first comment.)

Small and medium-sized enterprises are the backbone of the Israeli economy. Supporting them in times of crisis is not an expense – it’s a strategic investment in long-term resilience. Swift, clear government action can help preserve jobs, stabilize cash flow, and avoid widespread disruption in the private sector.

The final plan is expected to be approved and published within the coming days. As professional advisors, we continue to monitor all updates and remain in contact with the relevant authorities. We’ll share further developments as soon as they become available.

TOPICS > CPA Israel, CPA Services in Israel, CPA Services in Israel Financial Reporting, Israel Business Support, Maanak Iran, Roeh Heshbon, Tax Services in Israel, War with Iran business support