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Insights & News / Itay Edelstein
Incentivizing High-Tech Companies and Investment Funds: Israel’s Draft Income Tax and VAT Regulations
As a rule, foreign residents investing in Israel are exempt from Israeli capital gains tax, unless their activities are considered a business or are attributable to a permanent establishment in Israel. Investment funds that invest in Israel, however, are not necessarily eligible for this exemption, even where their limited partners are passive investors. This distinction may discourage foreign investment in Israel.
New Israeli Court Ruling: Companies with Accumulated Losses May Recognize Distributable Profits
An Israeli district court ruled, for the first time, that distributable profits may be recognized even when a company has a balance of accumulated losses, provided that the profits accumulated during the holding period actually contributed to reducing the accumulated loss, even if the company ultimately had no surpluses.
Approval of Minimum Corporate Tax on Multinational Groups Law: Israel Joins the New Global Standard
On December 31, 2025, Israel enacted legislation imposing a minimum corporate tax on multinational groups, which applies to Israeli resident entities that are members of an MNE as of the 2026 tax year.
Which Developers Are Entitled to a Refund of Land Development Expenses from the Israel Tax Authority?
A settlement was approved recently within the framework of two class actions, which may result in some taxpayers receiving considerable financial refunds, while specifically re-examining the taxation of additional development expenses. Those entitled to a refund must forward the Refund Documents to the class plaintiff’s attorney within 180 days of the settlement approval date. The ITA will transfer the refund due to each class member within 150 days of the date of receipt of the documents.