SHINING A LIGHT ON INSPIRED GOVERNMENT INCENTIVES
The government of Israel offers an assorted range of incentives in two main categories: Tax Benefits and Grants
Israel seeks to offer maximally supportive conditions for companies and investors seeking to invest in Israel.
As part of the extensive range of incentives and benefits, the State of Israel encourages international and local investment by offering grants, reduced tax rates, tax exemptions and other benefits.
Israel’s Ministry of Economy offers a wide range of specifically designed incentives in order to keep prosperity and growth in the country.
The Israeli corporate tax rate is 25%. Competitive industrial enterprises that are listed in Israel are entitled to preferred corporate tax rates, as follows: Companies located in Development area A could be entitled to a 9% corporate tax rate. Companies located in other areas can enjoy a 16% corporate tax. In both areas, additional dividend tax reductions might also apply.
Companies defined as special preferred industrial enterprises1, are entitled to a further reduction: a 5% tax rate in Development Area A and 8% in the rest of the country.
1Depending on the investment characteristics (scope, no. of employees etc).