Compensation for businesses for Operation ‘Lion’s Roar’: Applications for advance payments opened in Israel

The Israel Tax Authority has opened applications for an advance payment against future compensations for businesses affected by Operation “Lion’s Roar.” This applies to enterprises across the country, except for certain frontline localities, which have a separate procedure.

For Israeli businesses, this is important practical news: an advance can be requested even before submitting a final compensation claim. The system is designed for those who already see a drop in turnover, face a cash gap, and do not want to wait for the full completion of the bureaucratic procedure.

According to published data, final compensation claims can be submitted from May 17, 2026. Until this date, businesses can apply for an advance payment if they meet the program’s conditions.

Who can apply for an advance

Business owners who have suffered indirect economic damage as a result of Operation “Lion’s Roar” are eligible for an advance. This is not direct property damage, but a drop in income, disruption of work, loss of clients, restriction of activities, or other financial consequences specifically related to the military situation.

One of the key conditions is the turnover of the enterprise in the base year, that is, in 2025. It must be higher than 12,000 shekels and lower than 400 million shekels.

In addition, the business must show a turnover drop of at least 25% in March–April 2026 compared to the base period — March–April 2025. It is important that the decline is specifically related to Operation “Lion’s Roar,” and not to ordinary market fluctuations.

Main conditions for submission

A business that was opened no later than February 27, 2026, can apply.

The applicant must also confirm that they suffered indirect damage as a result of the operation. At the advance stage, businesses are not required to immediately enter complex calculations or upload a large data package.

The entrepreneur simply needs to log into the Tax Authority’s online system, select the relevant period — “Operation Lion’s Roar, March–April 2026,” enter the enterprise data, declare indirect damage, and choose the desired advance amount. It can be up to 80% of the estimated compensation amount.

How the advance amount is calculated

For businesses that have already received compensations for previous periods — June 2025, October 2023, or November–December 2023 — the calculation is simpler. They can request an advance of up to 80% of the highest compensation or advance payment approved for one of these periods.

If a business filed a claim for these periods but did not receive compensation or an advance, it cannot use this route for an advance. In such a case, it will have to wait for the submission of the final compensation claim.

For enterprises that have not previously filed such claims, the calculation is different. They can request an advance of up to 80% of the amount obtained by multiplying the average monthly volume of current expenses for 2025 by a coefficient of 7%.

For the Israeli audience, this is especially important in small businesses: shops, services, private offices, small studios, repair teams, tourism, events, catering, and local trade often live not by annual profit, but by current cash flow. That is why an advance can become not a bonus, but a way to hold on until the final compensation decision.

NAnews — Israel News | Nikk.Agency notes: the advance is not a separate gift grant. It is an advance payment that will then be deducted from the final compensation amount.

What will happen to the advance after submitting the final claim

When the system for receiving final compensation claims opens, the business must submit a full claim within the established deadlines.

The amount of the advance already paid will be deducted from the final compensation. If the entrepreneur received an advance but then did not submit the final claim on time, they may be required to return the received money.

This is an important point: the advance solves a short-term liquidity problem but does not cancel the obligation to go through the final procedure.

Special rules for new businesses, VAT-exempt, and frontline localities

For businesses opened after January 1, 2025, the basic calculation is different. In such cases, the Tax Authority considers the turnover from the date the business was opened or from July 1, 2025 — the later date is taken. Then the data is recalculated proportionally to obtain an annual or two-month base for comparison.

If the enterprise was opened after January 1, 2025, and did not file a claim for June 2025, it can request an advance of up to 80% of the calculation based on average current expenses from the start of activity or from July 1, 2025 — depending on which date is later — until February 28, 2026, using a coefficient of 7%.

For “osek patur” — small businesses exempt from VAT collection — a separate approach is provided.

If such an entrepreneur previously filed claims for the periods June 2025, October 2023, or November–December 2023, rules similar to ordinary registered businesses apply to them. If not filed, they can request an advance of up to 80% of the amount due to them according to the “Lion’s Roar” operation payment table, based on the 2025 turnover or adjusted base amount.

For “osek patur” opened after January 1, 2026, an advance of up to 80% of the compensation amount in the lower tier of the table — up to 90,000 shekels turnover — is possible. The published text indicates an amount of 3,356 shekels as the corresponding base for this category.

Separate route for northern border localities

For enterprises in frontline localities, a separate advance mechanism applies. It concerns businesses located in border localities of the defense zone, as well as northern localities that were effectively subject to similar restrictions and prescriptions.

Such enterprises may have the right to file a claim under the “red” track. But since the exact amount of damage often becomes clear only later, the Tax Authority has opened the possibility for them to request an advance in advance.

The final claim in this direction can be submitted within three months after the end of the operation.

The advance calculation for such businesses can follow two options: either by the drop in turnover compared to the same months of the previous year, taking into account the coefficient of saved expenses, or by the percentage drop multiplied by the salary paid in the corresponding months of the previous year.

The system itself will determine which option gives the enterprise a higher advance, using data already available to the Tax Authority.

How to apply and when to expect the money

The application is submitted online through the Tax Authority’s claims system. After identification, you need to select “indirect damage — submission of a new claim,” then the period “Operation Lion’s Roar — March–April 2026” and the route “advance — general national.”

Then the business fills in the enterprise data, confirms that it suffered indirect damage, and intends to submit a final claim. After that, the desired share of the advance is indicated — up to 80% of the estimated amount.

The system calculates the amount based on data already in departmental databases and transfers the payment to the enterprise’s bank account.

The deadline for submitting an advance application is May 17, 2026. After the opening of the final compensation claims system, the advance system will be closed.

According to the Tax Authority, after receiving the application, the Compensation Fund must calculate the amount and transfer the money within 7 working days. Exceptions are cases where additional verification or document provision is required.

For entrepreneurs in Israel, this means that delaying submission is not advisable. If the business indeed lost turnover in March–April 2026 due to Operation “Lion’s Roar,” the advance can cover part of the current expenses until the full compensation procedure is completed.

Here – https://www.gov.il/he/service/request-for-dvance-dealers-shaagat-haari