The Knesset Finance Committee has approved new rules that the government hopes will encourage further investment in Israeli high-tech. The rules, proposed by Finance Minister Moshe Kahlon and the Tax Authority, cut various taxes, including taxes on dividends and capital gains.
The rules, Ministry officials said, were designed to encourage Israeli firms to domicile themselves in their home country and to bring their intellectual property back to Israel. The program provides additional tax breaks for companies that locate their headquarters in the Galilee or Negev, or employ lower socio-economic populations, like Arabs and chareidim. The cuts will also be available to foreign companies who choose to open facilities in Israel.
In a statement, the Ministry said that the rule changes would encourage more investments in Israel in general, and in peripheral areas in particular. The investments “will increase the number of jobs and the amount of opportunity for all Israelis, and especially for residents of the periphery,” the Ministry added.