Content area
Full Text
On July 14, 2015, the Israeli Finance Ministry published its proposal for an Israeli innovation box regime that would enhance significantly tax incentives available in Israel. In the proposal, the Finance Ministry said that in a post-BEPS era, technology multinationals may view Israel as an opportunity to consolidate IP and substance due to the hundreds of R&D centers operating currently in the country. Accordingly, the innovation box regime will apply to multinational companies that convert their existing R&D centers into IP hubs or establish new ones. The tax incentives will also apply to existing Israeli companies that qualify for the new regime.
Background. Israel has become known as a global technology innovation center with a world-leading start-up ecosystem. Many multinationals have recognized this and established a presence in the Israeli market through R&D centers and acquisitions. The new proposal is based on the Finance Ministry's acknowledgement...