National Economic Conference
To Offset U.S. Tax Reform, Israel to Cut Red Tape For Transfer Tax Exemption
Speaking at Calcalist’s National Economic Conference, Israel’s tax chief Eran Yaacov said a special plan to enable Israel-based companies to change holding structure without paying a capital gains tax is in the works
Omri Milman and Lilach Baumer | 09:45 06.09.2018
To offset the U.S. tax reform and its potential effects on entrepreneurs debating whether to set up their companies in Israel or overseas, Israel’s tax authority will be introducing in the upcoming weeks a special tax plan intended to encourage local entrepreneurs to register their companies—and their intellectual property—in Israel.
For daily updates, subscribe to our newsletter by clicking here.In December 2017 the U.S. signed into law a major overhaul of the federal tax system. The new model lowered the U.S. corporate tax rate from 35% to 21%, making in-country operations more attractive, and also levied a new tax on cross-border payments and other modified taxable income of American corporations with average annual gross receipts of $500 million or more.
The change is intended to bolster Israel’s economy and encourage companies to keep their intellectual property in the country, Yaacov said.“Israel is a small country that is very much affected by international and global events,” Yaacov said. “We need to constantly consider the creation of growth engines.”