Israel’s Tax Authority has begun imposing a series of new conditions on dozens of yeshivas and Torah institutions seeking to obtain or renew recognition under Section 46 of the Income Tax Ordinance, which allows donors to receive tax credits for their contributions. The institutions are now required to provide information about their students and certify that they meet requirements regarding their status with security authorities.
3+In letters sent to the institutions, yeshiva administrations must certify that none of their students have been called for security service and failed to regularize their status as required by law, and that no students are defined as deserters. Additionally, the institutions must commit not to admit students in the future who do not regularize their status with military authorities.
As part of the process, yeshivas were asked to submit to the Tax Authority a complete student roster including names and ID numbers, along with documentation proving regularization of military status. Acceptable documents include: exemption certificates, discharge certificates, reservist certificates, or official confirmation of recruitment date.
3+The Tax Authority clarified that meeting the new requirements is a condition for continued recognition under Section 46. The recognition allows donors to receive tax credits for their contributions, and failure to meet the conditions could lead to revocation of approval and damage the institutions’ ability to raise donations.
The current move comes after Attorney General Gali Baharav-Miara instructed the Tax Authority at the end of May to act to prevent granting the Section 46 tax benefit to institutions where yeshiva students who have not regularized their status with military authorities are studying. The directive also established a dedicated team to examine and prevent indirect funding channels to these institutions.
3+Following the directive, Shas chairman Aryeh Deri sharply attacked the move and claimed it could lead to a “tax revolt,” disconnect the Haredi public from state authorities, and create a deep rift. According to him, “The outgoing and anarchist attorney general, racing ahead with arrests and harsh sanctions against Torah scholars, is driving the Haredi public to the edge.”
Deri called on the prime minister and coalition party leaders to oppose the move, adding: “If you truly want the right-wing bloc to continue existing, you must stand forcefully against this criminal persecution. Your voice is not being heard. It’s inconceivable that we will be the punching bag of this government, that they will harm everything sacred and dear to the Jewish people, and you will stand aside and remain silent. Silence is filth.”
3+Among figures in the Torah world, the move was met with criticism. According to them, this represents a significant policy change that could directly affect the yeshivas’ ongoing operations and the volume of donations they manage to raise.