Government measures in key jurisdictions 5th edition - Flipbook - Page 73
Israel
Litigation
Are the courts
operating?
On March 15, 2020, the Minister of Justice (MOJ) signed and issued emergency orders affecting
most civil and criminal procedures in Israeli courts. Pursuant to these emergency orders, most
hearings in civil cases were halted, except for special cases such as hearings re motions for
temporary and interim remedies.
Moreover, the submission of court papers was also postponed, except if a contradicting and
overruling decision in a specific case was handed down by the relevant court or if a specific
date was given to submit such court papers.
Most of the limitations imposed by the MOJ's emergency orders were lifted on May 10, 2020,
thus resuming any submissions halted due to these emergency orders and allowing most
procedural matters to return to normal, including the holding of court hearings.
On 7 January 2021, the Court's Administration announced, in light of Israel's third quarantine,
during the month of January 2021, the courts will act proactively to postpone hearings, and will
be considerate while reaching a decision concerning motion to postpone hearing or motion to
postpone submission of court documents.
Temporary emergency regulations were published to provide extensions for certain tax-related
deadlines as a relief measure due to the Covid-19 pandemic. These include:
• Extensions of the deadlines for reporting and payment of VAT for the months January, April
Has any new
and November-December 2020, with respect to dealers reporting on a monthly and bilegislation been
monthly basis;
introduced in light
• Extensions of the deadlines for filing 2018 and 2019 income tax returns for
of Covid-19?
individuals/corporations;
• Extensions of the validity of 2019 withholding tax certificates;
• Extensions of the validity of 2019 tax coordination certificates; and
• Mechanism of double depreciated for assets purchased between 1 September 2020 and 30
June 2021.
Tax
In addition, the period between March 22, 2020, and May 31, 2020 (with respect to Israeli Real
Estate Taxation Law the period has been extended until June 30, 2021), shall not be counted as
calendar days when determining the tax-related deadlines detailed under certain sections of
various Israeli tax laws, such as the Israeli Income Tax Ordinance, the Israeli Value Added Tax
Law, the Israeli Real Estate Taxation Law etc.
Moreover, according to a new legislations, reimbursement of income tax advances paid for the
months of January and February 2020 is now available, if it was proved to the assessing officer
that the tax which the taxpayer may owe for 2020 will be less than the amount of advances he
owes for that year.
Monetary grants not subject to VAT were also provided to businesses hurt by the Covid-19
pandemic. The grants were doled out in three rounds:
Round #1 – This grant is for self-employed individuals with at least a 25% decrease in revenues
during March-April 2020 compared to those months in 2019, subject to certain additional
conditions. The grant amount is up to NIS 6,000, and the application for the grant must be
submitted by no later than July 1, 2020.
Round #2 – This grant is for self-employed individuals and salaried business owners with at least
a 25% decrease in revenues during March-June 2020 compared to those months in 2019,
subject to certain additional conditions. The grant amount is up to NIS 10,500, and the
application for the grant must be submitted by no later than August 17, 2020.
Round #3 – This grant is for self-employed individuals and corporations for help with fixed
expenses and is granted to businesses with an annual turnover of up to NIS 20 million and
whose profits were affected by Covid-19 (at least a 25% decrease in revenues during MarchApril/June 2020 compared with those months in 2019). The grant amount is up to NIS 400,000,
and the application for the grant must be submitted by no later than November 15, 2020 (and
for “Amendment for existing grant application" intended for cash-based reporters, no later than
January 31, 2021).
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