Israel Tax Authority Sets New Military Status Conditions for Yeshiva Donations

The Israel Tax Authority has launched a comprehensive campaign targeting dozens of yeshivas and religious institutions across the country, requiring them to submit affidavits and documentation proving their students have legally arranged their military status. This move is a prerequisite for maintaining approval under Section 46 of the Income Tax Ordinance, which allows donors to receive tax credits for their contributions.

Yeshiva heads have been asked to sign declarations confirming that none of their students are draft evaders or have unresolved military service status. They must also commit not to admit students who have not regularized their military standing while holding Section 46 approval. Institutions are required to provide full lists of students, including names and ID numbers, along with documents such as military enlistment certificates, discharge papers, exemption approvals, or future enlistment confirmations.

Failure to comply with these requirements may result in the revocation of Section 46 approval, thereby denying donors the associated tax benefits. This initiative follows a directive from the State Attorney Gali Baharav-Miara issued at the end of May, aiming to prevent tax benefits for institutions with students who have not settled their military status. Additionally, a dedicated team will be established to examine ways to block indirect funding routes to such institutions.