The Israeli Tax Authority demands dozens of haredi yeshivot to prove that their students have regularised their military status to maintain the tax benefits of donations. This measure affects a key source of income for these religious institutions.
The Israeli Tax Authority has sent official letters to dozens of haredi yeshivot with an unprecedented demand: to demonstrate that all their students have regularised their status with the Israeli Army if they wish to maintain the tax benefits enjoyed by their donors. This measure, which affects religious institutions across the country, represents a new front in the long-standing dispute between the state, the judicial system, and the ultra-Orthodox leadership.
The requirement is based on Article 46 of the Income Tax Ordinance, which allows donors to receive tax deductions when they contribute money to recognised institutions. In practice, the potential loss of that approval could hit a key source of income for many yeshivot, especially those that rely on private contributions to finance their daily operations.
Tax Requirement with Complete Student Listings
The new condition is not limited to a general statement. Institutions must provide complete lists of students, including names and identification numbers, as well as documentation proving each student's military status. Accepted documents include service certificates, exemption certificates, release documents, or confirmations of a future recruitment date.
The Tax Authority also requires that institutions commit to not accepting students in the future who have not regularised their status with the military authorities while maintaining tax approval. For the haredi leadership, this measure represents a direct escalation against the world of the Torah. Ultra-Orthodox leaders argue that the state is using economic tools to force changes in a lifestyle model based on full-time religious study.
“This is not an administrative issue, but a political and cultural pressure on the yeshivot,” defend sources from the ultra-Orthodox sector.
On the other side, proponents of the measure argue that the state cannot continue to support, directly or indirectly, institutions where young people study who do not comply with recruitment orders. Attorney General Gali Baharav-Miara had already indicated that allowing tax benefits to those establishments could be tantamount to indirectly financing military service evasion.
The Background: The Eternal Dispute over Haredi Recruitment
The conflict goes far beyond a tax discussion. Israel has been grappling for decades with an unresolved issue regarding military service exemption for students of haredi yeshivot. For years, the state allowed mass deferments on the grounds that “the study of the Torah is their occupation,” a formula that protected tens of thousands of ultra-Orthodox young people from recruitment.
However, recent judicial decisions have changed the landscape. The Supreme Court determined that, in the absence of a valid law regulating the exemption, yeshiva students are subject to the same service obligations as other Israeli citizens. This situation opened the door to economic sanctions, administrative restrictions, and control measures over the institutions that receive them.
The new tax requirement adds to that process. It does not directly compel each student to present themselves to the Army, but places yeshivot in a difficult position: to cooperate with the state in verifying their students' military status or risk tax benefits that may be crucial for their budget. The reaction from the haredi sector could have significant political consequences, as ultra-Orthodox parties consider recruitment a red line.
The dispute reflects a deeper fracture in Israeli society, especially in a context of war, mobilization of reservists, and increasing demands for equality in the burden of military service. For large sectors of the public, it is unsustainable for a part of the population to remain outside the recruitment system while other citizens serve long periods of mandatory or reserve service.
For haredi yeshivot, however, the preservation of religious study is an identity and spiritual issue. The new requirement from the Tax Authority turns that historical tension into a concrete battle over documents, student lists, tax benefits, and public legitimacy. If institutions do not comply with the requirements, their donors could lose the tax incentive to contribute funds, which could quickly be felt in a system where many yeshivot depend on constant donations.
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