Income Tax Ordinance Amendment (Tax Exemption for an Active Reservist) (Temporary Provision – Swords of Iron) Bill

What does the bill do?

The bill adds a section to the Income Tax Ordinance granting a tax exemption to active reservists as defined in the National Insurance Law. The exemption applies to compensation for reserve duty starting from October 7, 2023 (the start of the Swords of Iron War) until the end of the validity of the declaration of a special situation on the home front. The explanation notes that the economic burden on reservists is heavy because their work stopped and they invested solely in fighting.