In the framework of the economic policy for the years 2011-2012 (hereinafter: the “legislative measures“), some fundamental amendments have been made in Chapter 7 (the Temporary Order), that provide significant tax benefits. These measures are designed to encourage young Israeli high-tech companies who exercise their activity in the field of research and development. Inter alia, the amendments are targeted to:
As a result of the said tax remissions, the capital investments to be increased by 18-24% and the Israeli companies retain the acquired now-how.
One of the conditions for the company to obtain status of “beneficiary” or “priority project” is its not-involvement in trading on the exchange market and acquirement of at least 80% of the shares.
It should be noted that as for now, the Temporary order might be applied only within the period from 2011 to the end of 2015. Nevertheless, it is a positive and important step aimed at attracting investments in the start-up activity of Israeli high-tech companies.
On the additional tax benefits for high-tech companies – see our comments to the law “On the stimulation of investments in 2011”.
Our firm specializes in counseling and legal and tax guidance for companies in the fields of gas and oil, high tech and investments in Israel and abroad.
Do not forward and/or distribute that said in this circular to any entity other than the entity the circular is addressed to. Do not copy and/or photocopy and/or use this circular in any way without obtaining the undersigned’s permission in writing and in advance.
This circular is general. Do not use anything stated therein without receiving an opinion and/or professional particular legal advice according to unique circumstances.
In 2012, the Federal Supreme Court of Switzerland ruled that banks must reimburse their clients – among them many Israelis – who were billed […]
Force Majeure is a common clause in a contract. Many agreements include a Force Majeure clause which can, in some specific cases, cancel or […]
Virtual Currency Exchanges allows the trading and exchange of cryptocurrency (virtual currencies or utility tokens) for other cryptocurrencies or for fiat currency. Nevertheless, this […]
It is common knowledge that, as a part of the division of land estates, there are opportunities to plan taxation correctly. This is sometimes […]
“Even clients of the Swiss bank Credit Suisse received a preferred list of lawyers and accountants to perform ” voluntary disclosure ” procedures – […]
On September the 7th, 2014, the Israeli Tax Authorities published a new Temporary Order for Voluntary Disclosure Requests authorized by the new Voluntary Disclosure […]
A. GENERAL The Tax Authorities are interested in encouraging tax-payers, dealers, individuals and functionaries in enterprises of whom violated the tax laws, to correct […]
As you know, after introducing of amendment #168 of 01.01.2007 into Israeli law on income taxation, the new immigrants and citizens who have returned […]