20 July 2016 Israel proposes new innovation box regime to attract IP investment The Israeli Finance Ministry published its proposal for an Israeli innovation box regime on July 14 that would significantly enhance tax incentives available in Israel. Under the proposed regime, 6% corporate income tax rate and 4% withholding tax on dividends are expected to apply to qualifying companies with consolidated revenues of over ILS10b (app. US$2.5b). Other qualifying companies would be subject to 12% corporate income tax and 4% dividend withholding tax. The proposal is aimed at intellectual property (IP) based companies, in particular, technology companies. A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details. Document ID: 2016-1250 |
