Payments up to 2 million shekels from the Tax Authority – who can receive them

The Israel Tax Authority is launching a pilot project to compensate small and medium business owners affected by criminal extortion. The Ministry of Finance has allocated 30 million shekels. The maximum payout is 2 million shekels. Applications are accepted from September 24 to November 23, 2026, for damage caused from October 4 to December 4, 2026.

The Israel Tax Authority has announced the launch of a pilot project aimed at protecting small and medium business owners from extortion. For the first time, entrepreneurs affected by criminal racketeering can legally demand financial compensation from the state. The Ministry of Finance has allocated 30 million shekels for the project. The program covers damage caused between October 4 and December 4, 2026. The maximum payout per case is 2 million shekels. Only owners of legally operating businesses with a valid license and an active tax file are eligible. Compensation covers direct material damage to the building, goods, equipment, and the entrepreneur's home. Lost profits are not compensated. The applicant must file a police report, confirm the insurance company's refusal, and have building permits. Applications are submitted online within seven days of the damage. Review may take up to eight months. Repairs before the assessor's visit are prohibited.