The Finance Committee approved an addition to the “negative income tax” grant (labor grant) against the background of the corona crisis. The budget scope of the addition is NIS 800 million. Family members who work in a family business will also be eligible for the grant. In addition, the committee approved the increase of the budget framework for 2020, for the purpose of financing the expansion of the economic plan, amounting to NIS 2.5 billion
The supplement for a negative grant will be given for the months of April to December 2020, when the supplement to the grant will be 62% of the amount of the grant due to the employee in each of the months, provided that the total supplement to the grant is not less than NIS 1,000. It is also stipulated that an advance will be given, at the expense of the grant, which will be calculated on the basis of the grant to which the employee or self-employed person is entitled in 2019. In addition, the law stipulates that the advance rate will be 25% for each month in 2019, provided the total down payment is not less than NIS 500. .
How do you get a negative income tax?
Also, against the background of the difficult situation in the economy, and so that family members working together in the business, experience double injury, even though the original law does not grant the grant to family members, under certain conditions family members will also be allowed to receive negative income tax. In addition, the law stipulates that a self-employed person who is entitled to a self-employed grant will also be entitled to a supplement to the grant and the payment of an advance, in a similar manner.
The amendment also stipulates that eligibility for a fixed expense grant for the months of May-June 2020 will apply to businesses whose turnover in 2019 was less than NIS 300,000, even in the event of a 25% decrease in their turnover in those months compared to corresponding months in 2019 (Instead of 40% as currently provided by law).
An accompanying amendment, which was introduced at the request of the committee within the framework of the National Insurance Law, stipulates that even those who have not yet submitted income tax reports for 2018 will be entitled to a grant for each citizen (NIS 750).
Another amendment, introduced at the request of the National Insurance Institute, stipulates that a person who goes to the Knesset again and is entitled to unemployment benefits will be entitled to them until October, even if he has not yet registered with the employment service or his registration has not yet been received.
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