Israeli Tax Authority Tightens Military Status Checks for Ultra-Orthodox Schools Under Section 46

The Israeli Tax Authority has expanded its requirements for ultra-Orthodox educational institutions holding approval under Section 46, which grants tax benefits for donations. Previously applied only to new institutions seeking this approval, the new rules now also apply to existing yeshivas and schools. These institutions must declare that none of their students are draft evaders or have unresolved military status with the Israel Defense Forces (IDF). They are also required to commit to not accepting students whose military status is not regularized in the future.

As part of the process, schools must submit lists of their students along with their ID numbers. Students will need to provide documentation proving their military status, such as a combatant certificate, exemption, discharge papers, or an official document indicating their enlistment date. Failure to comply with these requirements could result in the revocation of the Section 46 approval, which is crucial for institutions to offer donors income tax deductions and to facilitate fundraising.

This move marks the first time that existing institutions are mandated to verify and report their students' military status as a condition for maintaining their tax-exempt status. The expanded scrutiny aims to ensure that ultra-Orthodox schools do not harbor draft evaders, reflecting ongoing tensions over military conscription in the Haredi community.